Michael Burry Says PayPal's $60.50 Buyout Offer Is "Simply Too Low." Here's the Case for a Higher Bid.

Yahoo Finance ·

PayPal ( PYPL +2.16% ) investors finally got some good news on Wednesday, and it arrived in the form of a takeover offer. Privately held payments company Stripe and private equity firm Advent International have offered $60.50 per share in cash for PayPal, valuing the company at more than $53 billion, CNBC reported. Shares of the payments specialist soared 17% on the news, closing at $55.52. Famed investor Michael Burry, best known for his bet against the housing market chronicled in "The Big Short," didn't wait long to weigh in. In a post published Wednesday on his Substack, Cassandra Unchained, Burry, who counts PayPal among his portfolio holdings, wrote that the bid "is at 1.21x IV15 and simply too low." Is he right? His math, and some of PayPal's own numbers, make a case worth taking seriously.

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