Prominent investor Michael Burry has publicly dismissed a $60.50 per share buyout offer for PayPal Holdings Inc, calling the price 'simply too low' and casting doubt on the immediate future of the payments company. Burry, who gained fame for his successful bet against subprime mortgages before the 2008 financial crisis, made his views known in a regulatory filing and subsequent social media post, sending ripples through global markets.
In London trading on Thursday, PayPal shares listed on the FTSE 100 fell 3.8% to the equivalent of £46.20 per share, underperforming the broader index which slipped 0.4% to 8,212 points. The sell-off was concentrated in the technology and payments sector, with rivals Block Inc and Adyen both losing around 1.5% on contagion fears. Analysts at Citi described Burry's intervention as 'a significant hurdle' for the proposed deal, noting that his stake gives him considerable influence over shareholder votes.
The bid, reportedly tabled by an unnamed private equity consortium, values PayPal at roughly $65 billion. Burry's objection centres on what he sees as a deep undervaluation of PayPal's core payments business and its fast-growing Venmo platform. 'At $60.50, you are buying a decade of innovation for pennies,' he wrote on social media. 'The board should demand a fair price or walk away.'
For UK investors and pension holders, the saga is a reminder of the risks and opportunities in cross-border M&A. Many British pension funds hold PayPal shares indirectly through US equity tracker funds and actively managed global portfolios. A protracted takeover dispute could create short-term volatility, but a higher eventual bid might boost returns for those with exposure to US tech stocks.
The UK's Takeover Panel is unlikely to be directly involved as PayPal is US-incorporated, but the London Stock Exchange-listed shares mean UK shareholders will have a vote on any final deal. Market participants now expect either an improved offer from the consortium or a competing bid from a strategic buyer, such as a large bank or fintech firm.