PayPal Pauses Venture Capital Portfolio Sale After Lowball Offers

PayPal has paused its planned sale of its venture capital portfolio after offers came in at no higher than 60 cents on the dollar, Seeking Alpha reported Friday (Sept. 4), citing a paywalled article by Axios that was based on unnamed sources.

The investments in PayPal’s portfolio include shopping app Tabby and crypto platform Anchorage, and the company’s attempt to sell the portfolio followed its decision earlier this year to wind down its venture capital arm, according to the report.

PayPal did not immediately reply to PYMNTS’ request for comment.

It was reported in June that PayPal was “exploring strategic options” for its venture capital arm.

“As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture capital arm, PayPal Ventures,” a company spokesperson said at the time.

The June report also cited unnamed sources who said that PayPal was shutting down PayPal Ventures as part of a broader corporate shakeup and that the company was looking to sell some of its positions on the secondary market.

PayPal announced in April that it undertook a reorganization that includes a three-business operating model. The three businesses include checkout solutions and PayPal; consumer financial services and Venmo; and payment services and cryptocurrency.

PayPal President and CEO Enrique Lores said in an April press release: “To accelerate growth and unlock our full potential, we need to recommit to our fundamentals — getting much closer to the consumer, aligning the company around three strong businesses, simplifying how we work, sharpening accountability and prioritizing operational excellence.”

During a July 28 earnings call, Lores said the immediate work in PayPal’s multiyear turnaround plan includes improving checkout, rebuilding consumer engagement, expanding financial services and Venmo, modernizing technology and cutting costs.

Chief Financial and Operating Officer Jamie Miller said during the call that PayPal is focused on “removing duplication, bands and layers” before moving into later phases of the restructuring over the next 12 to 18 months.

It was reported Aug. 28 that Advent International and Stripe walked away from a potential buyout of PayPal, ending months of speculation over a deal.