PayPal recently announced that it is moving core applications to Google Cloud. The PayPal Google Cloud relationship is not new (read more here). However, what is interesting to us is that Bill Ready (Google Commerce leader having joined Google in January 2020) is PayPal’s former COO. Further, Google Commerce could use a boost in its battle with Amazon. In addition, Google Pay could afford to be bolstered in its battle with Apple Pay and Amazon Pay. If Google were to acquire PayPal it would kill two birds with one stone. This proposed acquisition makes strategic sense. Give such a deal 24-48 months to marinate. Interest rates will have climbed by then, Tech valuations will have descended (Good news for cash-rich Google), and PayPal and Google product teams will have had more time together. A potential roadblock would be incoming FTC Commissioner Lina Khan who we expect will be tough on Big Tech mergers and acquisitions.
