Stripe's valuation soars to $140 billion! Acquisition offers continue to surge, yet they still refuse to go public

Stripe plans a new round of tender offers, valuing the company at at least $140 billion, a jump of over $30 billion from last year’s $107 billion. Since 2024, this payments giant has frequently conducted tender offers, allowing employees to cash out without going public. Co-founder John Collison stated in January this year that Stripe is still not eager to IPO, while laying off 300 employees and continuing to hire.

The Tender Offer Strategy Behind the $140 Billion Valuation

Sources familiar with the matter reveal that Stripe is arranging a tender offer, which will push its valuation to at least $140 billion. This figure exceeds last year’s $107 billion valuation by over $30 billion, a 30.8% increase. Terms of the latest tender offer may change, as private information is involved, and sources requested anonymity. Axios first reported on the latest valuation.

Tender offers are a core strategy Stripe has adopted in recent years, allowing existing shareholders (mainly employees and early investors) to sell stock on the secondary market without the company going public. This mechanism provides liquidity for long-term holders while keeping the company private, avoiding the regulatory costs, disclosure requirements, and stock price volatility associated with going public.

Since 2024, Stripe has frequently conducted tender offers. This high frequency indicates the company is deliberately establishing a regular liquidity window, enabling employees and investors to realize gains periodically rather than waiting for an indefinite IPO. For early employees who have held shares for years, this arrangement is highly attractive, as they can convert paper wealth into actual cash for home purchases, investments, or other life plans.

Looking at the valuation growth rate, Stripe’s performance over the past year has outpaced most tech unicorns. A $30 billion increase in valuation is comparable to the market cap of a large publicly traded company. This rapid growth reflects Stripe’s strong business expansion and market optimism for payment infrastructure. Notably, this valuation increase occurs amid a generally pressured global tech stock environment with still-tight interest rates, highlighting Stripe’s competitive advantages.

Three Major Advantages of Stripe’s Tender Offer Mechanism

Employee Retention Incentive: Regular liquidity windows reduce employee turnover motivation, preventing talent loss

Valuation Control: Under private status, valuation is negotiated between the company and investors, avoiding irrational market fluctuations

Regulatory Cost Savings: No need to comply with strict financial reporting and regulatory requirements of public companies

IPO Still a Long Way Off: Why Does Stripe Persist in Staying Private?

The latest agreement suggests Stripe may continue delaying its IPO. The company has repeatedly expressed a desire to remain private, including in January when co-founder and President John Collison told Bloomberg that Stripe “is still not in a rush” to go public. This stance is especially notable given the valuation soaring to $140 billion.

Traditionally, companies seek IPOs mainly for fundraising and providing an exit for early investors. However, Stripe has addressed liquidity through tender offers, and since raising $6.5 billion in a Series I funding round led by Thrive Capital in 2023, it has not announced new financing plans. More critically, Stripe is expected to be profitable throughout 2024, indicating it has achieved self-sustaining cash flow and no longer relies on external funding to operate.

In this context, an IPO is more a burden than an opportunity for Stripe. Going public would mean facing quarterly earnings pressures, shareholder litigation risks, and short-term market sentiment swings. The past two years have shown that even profitable companies can see their stock prices plummet due to macroeconomic shifts. Staying private allows Stripe to focus on long-term strategy rather than short-term profits.

Stripe’s stance also reflects a broader trend in the tech industry. Companies like SpaceX and OpenAI also choose to remain private long-term, providing liquidity to shareholders through regular secondary market transactions. This model relies on ample private funding and mature secondary market infrastructure. For top-tier tech firms, privatization no longer equates to funding difficulties or liquidity shortages.

Strategically, delaying IPOs also helps Stripe maintain informational advantages over competitors. As a private company, Stripe is not required to disclose detailed business data, customer structures, or expansion plans, which is crucial in the fiercely competitive payments market. Public competitors like PayPal and Square (Block) must release detailed quarterly reports, while Stripe can adjust strategies discreetly.

The Contradiction of Cutting 300 Jobs While Continuing to Hire

In January, Stripe laid off about 300 employees, roughly 3.5% of its total workforce, citing it as part of a restructuring plan. Yet, the company also stated that despite layoffs, it plans to continue hiring and expanding its staff. This seemingly contradictory move actually reflects a new norm in tech HR management.

A 3.5% layoff rate is relatively moderate in the tech industry. Meta cut over 20% in 2022-2023, Amazon laid off 27,000 employees, and Microsoft cut 10,000. Compared to these, Stripe’s 300 layoffs resemble targeted restructuring rather than panic-driven cost-cutting. The company claims this is part of a “restructuring plan,” implying the eliminated roles may be concentrated in specific departments or functions.

Simultaneously announcing continued hiring reveals the real purpose: optimizing talent structure rather than shrinking scale. Stripe may be shedding underperformers or skills mismatched employees while actively recruiting in AI, enterprise services, and international expansion. This “old to new” hiring approach makes sense in a valuation surge environment, as the company needs to ensure its team composition aligns with future growth targets.

From a financial perspective, cutting 300 jobs can save substantial costs. Assuming an average annual salary of $200,000 (including base, bonuses, and equity), this amounts to $60 million saved annually. These savings can be reinvested into high-priority projects or used to recruit top-tier technical and managerial talent.

The simultaneous layoffs and valuation growth are not coincidental. Investors valuing Stripe at $140 billion clearly recognize the company’s cost control and profitability potential. In an efficiency-driven era of tech, companies that can grow while optimizing labor costs often command higher valuation multiples.

Competitive Landscape of Payment Processing and Stripe’s Advantages

As a leading global payment processing platform, Stripe’s $140 billion valuation reflects market confidence in the long-term prospects of payment infrastructure. Its core business is providing online payment services for companies like Amazon, Shopify, Uber, and millions of SMBs.

Compared to traditional payment processors, Stripe’s technical edge lies in its API-first design and developer-friendly integrations. Businesses can embed Stripe into websites or apps within hours, without complex negotiations or technical onboarding. This low-friction experience has helped Stripe capture significant market share among startups and fast-growing firms.

The payment processing market is still rapidly expanding. With rising e-commerce penetration, digital payments, and cross-border transactions, global payment fees are projected to surpass $3 trillion in the next five years. As the infrastructure provider, Stripe earns transaction fees, creating a predictable, high-margin revenue model.

More importantly, Stripe is expanding beyond simple payment processing into broader financial services. The company has launched Stripe Capital (business loans), Stripe Issuing (virtual and physical card issuance), and Stripe Terminal (offline payment hardware), extending its reach across the entire payment ecosystem. This vertical integration increases customer lifetime value and enhances stickiness.