NEW YORK, Aug. 16 -- The company that once defined internet payments is now potentially a takeover target for the very competitor it helped inspire.

Stripe and private equity firm Advent International are in advanced negotiations to acquire PayPal Holdings in a transaction that would value the struggling digital payments giant at approximately $53 billion, The Wall Street Journal reported Thursday, citing people with knowledge of the matter. The two companies put forward a preliminary offer of $60.50 per share in July. PayPal's board rejected it. Negotiations continued regardless.

The persistence of those talks signals that both sides see value worth arguing over. PayPal's management is running a restructuring it has barely started and ...