This analysis is part of our series on 2024 M&A predictions. See all 10 matchups here.
Stripe graduated from Y Combinator in 2010.
It’s been nearly 14 years and investors have plowed $9.4B into the company.
Stripe is now one of the most valuable payments companies.
But its recent valuation trend has been downward as can be seen below.
Shopify is a strategic partner of Stripe and also invested in 2021 (likely at or near the peak $95B valuation).
Why should Shopify acquire Stripe?
- Seamless e-commerce experience with integrated payment processing.
- New revenue streams and reduced transaction costs would boost profitability.
- Access to valuable transaction data for better consumer insights.
- Global expansion with Stripe’s wide reach.
- Already has a deep partnership with Stripe both product and financially via its investment.
- Aligned with Shopify’s strategy as the below CB Insights Strategy Map highlights.
Find our next M&A prediction in this series — Anthropic acquires Stability AI — here.