What happened: PayPal stock (PYPL) jumped 16% on Wednesday.

What's behind the move: Payments company Stripe and private equity firm Advent International have reportedly made an offer to acquire PayPal at $60.50 per share in a deal that would value the payments giant at more than $53 billion, according to a Reuters report.

More from Yahoo Scout Why are analysts skeptical about the deal's success? What competitive challenges is PayPal facing? How has PayPal's stock performance been recently? What details are known about Stripe's acquisition offer?

Citing two people familiar with the matter, the report said Stripe and Advent would each own a 50% stake in PayPal under the proposed transaction.

The offer was reportedly submitted earlier this month and is backed by about $50 billion in committed bank financing.

PayPal and Stripe declined to comment to Yahoo Finance about the report. Yahoo Finance also reached out to Advent for comment, but had not heard back at the time of this publication.

What else you need to know: Wall Street analysts appeared surprised by the deal. Some are also not sure it will go through at the current valuation.

"While this valuation would represent a meaningful nearly 30% premium to other traditional merchant processors, we do not think PayPal's new CEO will likely embrace what could be viewed as a low-ball offer," William Blaire's Andrew Jeffrey wrote on Wednesday. The analyst maintained a Neutral rating on the stock.

The "Big Short" investor Michael Burry, who owns PayPal, said the offer price for the stock was too low.

"I believe the bid will have to rise," Burry wrote on Wednesday. "The company is well below intrinsic value, and any successful bid should be well above intrinsic value to account for the control premium."

PayPal stock is down 18% year to date and 35% lower than one year ago as fierce competition from competitors like Apple (AAPL) Pay, Block (XYZ), Stripe, and buy now, pay later companies Affirm (AFRM) and Klarna (KLAR) has crowded the market.

The stock has been unable to reclaim its 2021 all-time high of $310, set at the height of the pandemic amid a low-interest-rate environment.

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.

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