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Calif. — New PayPal (PYPL) CEO Enrique Lores doesn’t sound like a guy running toward the exit after inking a huge deal to sell the company he just started leading. He sounds like a veteran top executive who’s head-down trying to reinvent a fintech icon
“First of all, we have said that we are totally open and objective to evaluating the plan that we have versus external offers,” Lores told Yahoo Finance from the Goldman Sachs Communacopia & Tech Conference (video above). “We will always choose whatever provides more value. We have three growing businesses, three businesses where we can increase the value and the profit that we generate. We believe we have a strong plan to execute. We have the right team, and we think that we are going to be creating a lot of value for shareholders.”
Payments player Stripe (STRI.PVT) and private firm Advent International walked away in late August from trying to acquire PayPal for a reported $53 billion, or $60.50 per share, after the board rejected their overture.
It has been speculated that PayPal’s board was looking for $70 per share.
PayPal stock has since plunged to $53.20 as investors become more cautious again about the pace of a turnaround. The stock is down 81% over the past five years.
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Under Lores, who took the helm in March after turning around computing giant HP Inc. (HPQ), PayPal is now betting on a standalone turnaround strategy centered on a $1.5 billion run-rate cost-savings initiative and an aggressive $6 billion share repurchase program.
Lores’s blueprint focuses on streamlining the company into three dedicated business units while unifying legacy platforms — Braintree, Hyperwallet, and PayPal Complete Payments — to reignite transaction sales and profits.
The fruits of his efforts are not expected to begin surfacing until 2027 at the earliest.
“When we look at what is the best way to maximize value for shareholders, we think that at this point executing our plan is the best alternative,” Lores said.
Brian Sozziis Yahoo Finance’s Executive Editor, host of thePower Players with Brian Sozzipodcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X@BrianSozzi,Instagram, andLinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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