PayPal Holdings said Tuesday Elliott Investment Management has a $2 billion-plus investment in the company, making the activist investor one of the largest shareholders in the fintech firm.
Paypal's shares extended gains after the bell, rising as much as 11.8%.
The company also announced a slew of moves including appointing Blake Jorgensen as Paypal's new chief financial officer and a new $15 billion repurchase program. Blake, who takes over the role on Wednesday, joins PayPal from Electronic Arts.
PayPal has "an unmatched and industry-leading footprint across its payments businesses," said Jesse Cohn, a managing partner at Elliot, a day after the investment firm disclosed a similar stake in Pinterest Inc.
PayPal, which was among companies that won big during the pandemic, saw shares wipe out over 70% of their market value in a year as e-commerce growth retreated from pandemic-era records.
The company earned a profit of 93 cents for the three months ended June 30, lower than $1.15 per share a year earlier.
PayPal's revenue rose 10% on an FX neutral basis to $6.8 billion as payment volumes leapt 13%.