NEW YORK — Investor Michael Burry, best known for predicting the collapse of the U.S. housing market before the 2008 financial crisis, said Wednesday that the $60.50-per-share takeover proposal for PayPal Holdings Inc. significantly undervalues the company and predicted any successful acquisition will require a substantially higher offer.

Burry’s comments came hours after reports that Stripe and private equity firm Advent International had submitted a proposal valuing PayPal at more than $53 billion, a deal that immediately became one of Wall Street’s biggest stories and sent PayPal shares sharply higher.

“I am not selling, and I believe it is only an opening bid,” Burry wrote on his Substack.

The market appeared to agree that the first offer may not be the last. PayPal shares jumped as much as 19%, trading near $57, as investors weighed the possibility of a higher competing bid or improved terms.

Burry Says Intrinsic Value Is Much Higher

Burry argues investors are focusing on the wrong benchmark.

While the proposed offer represents roughly a 28% premium to PayPal’s previous closing price, Burry says that comparison ignores what he believes is the company’s long-term intrinsic value.

Using his proprietary discounted cash flow methodology, Burry estimates PayPal’s fair value is substantially above the current bid, placing a reasonable acquisition value near $100 per share.

His analysis suggests buyers would still receive attractive long-term returns even after paying significantly more than the current proposal.

For Burry, control of PayPal’s payments platform, technology and cash flow deserves a premium well beyond today’s offer.

A Newly Built Position

The timing also matters.

Burry only recently disclosed building a 3.5% ownership stake in PayPal, purchasing shares at an average price of approximately $49.38.

The investment fits a broader strategy that has favored beaten-down financial technology and software companies while reducing exposure to some of Wall Street’s highest-valued artificial intelligence stocks.

His recent purchases have included companies such as Salesforce, Fiserv, Adobe, MercadoLibre, and MSCI, reflecting a belief that many established technology businesses have become undervalued.

Analysts Divided

Wall Street remains split on PayPal’s future.

Some analysts believe the current proposal undervalues the company, arguing that PayPal’s global payments network, strong cash generation and recognizable consumer brand justify a significantly higher valuation.

Others question whether any buyer would ultimately be willing to pay prices approaching Burry’s estimate given PayPal’s slowing growth and increasingly competitive payments landscape.

The company continues facing pressure from Apple Pay, Block, Stripe, and numerous emerging fintech providers competing for both consumers and merchants.

Board Faces Difficult Decision

PayPal’s board has not responded publicly to the reported proposal.

Directors will likely review the offer with financial and legal advisers before determining whether to negotiate, reject the bid or seek alternative proposals.

Their decision could become one of the most closely watched corporate governance stories of the year.

Accepting the current offer would provide shareholders with an immediate premium.

Rejecting it could preserve the opportunity for a higher bid—but also risks losing the transaction entirely.

What Investors Are Watching

For now, investors appear to be betting that negotiations have only begun.

The stock’s move toward the reported offer price suggests markets expect either an improved proposal or a competitive bidding process.

Whether Burry’s $100-per-share estimate ultimately proves realistic remains uncertain.

What is clear is that one of Wall Street’s most closely followed value investors believes the first offer dramatically understates what he considers one of fintech’s most valuable franchises.

JBizNews Desk | New York

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