Could a PayPal acquisition be the exit that Square investors are hoping for? The companies most recent valuation was $6B, which means the acquisition won't be cheap. Let's wait and see how this one unfolds.
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Reposted from News by FinTech Collective
Rumor mill: PayPal is said to be in early talks to acquire Square
PayPal CEO Dan Schulman is apparently exploring several potential acquisitions, including the purchase of Square, sources close to both PayPal and Square have told Bank Innovation. Our sources tell us the acquisition talks are in the “early stages,” but are described as serious. Bank Innovation has reached out to PayPal and Square for comment. Jack Dorsey, Square’s founder, tweeted, subsequent to publication, that the news was “false.” (Note that Square similarly denied reports by The Wall Street Journal earlier this year that Google was negotiating to acquire the payments company, despite confirmations to the contrary.) PayPal is fresh off the news that it will be spinning off from parent company eBay in 2015. In the event of an acquisition, it appears that Square would keep its brand name, since it is popular among small businesses, though sources say that the two could be discussing a merger or a strong partnership, as well. But, this deal is “far from done,” even though talks have been described as “intense.”
