FintechPhoenix
Sep 26, 4:12 PM
$PYPL Anyone who thinks this deal gets done under
$100 per share is mistaken. Shareholders have little reason to accept less, particularly if the consideration is entirely in stock.
To be clear,
$100 is the absolute floor, not my target price. An all-stock transaction carries more risk than cash because shareholders remain exposed to the buyer's stock after closing. The headline value can therefore change significantly.
If we're assuming the buyer is Meta, that matters. A major acquisition could pressure Meta's stock, potentially reducing the actual value shareholders receive.
That's why
$115 per share is my starting point for an all-stock deal. The additional
$15 is the premium I'd require for accepting the buyer's stock and taking on that added uncertainty.
At
$115, the conversation can begin. The final determination would depend on the exchange ratio, Meta's stock price, dilution, deal protections, and other terms. Pay Pal can get to
$150 on its own by 2030.
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