PayPal Holdings (PYPL, Financials), the digital payments company behind PayPal and Venmo, is reportedly reviewing a $53 billion takeover bid from Stripe and private equity firm Advent International.
The offer values PayPal at $60.50 a share. That is above the company's recent market price, but the board's early view is that the proposal still falls short.
Directors reportedly believe PayPal could be worth more if management's turnaround plan begins to deliver stronger growth and better returns. The board is also looking at whether the buyers can secure financing and how long regulators might take to review a deal involving major payment companies.
PayPal shares rose 2% on Thursday to $56.73, suggesting investors see some chance of a higher bid or further talks.
The company has spent the past several years trying to regain momentum as Apple Pay, Google Pay and other payment platforms have taken a larger role in online and mobile transactions.
PayPal has not yet issued a formal response. Attention will now turn to the board's next meetings and whether Stripe and Advent are willing to improve their offer.