PayPal is still reportedly negotiating a potential sale to Stripe and private equity firm Advent, as the fintech firm's new CEO attempts to turn the company around.

After reporting better-than-expected Q2 results, PayPal said it remains focused on its AI-driven turnaround, but would consider a deal that creates more value for shareholders.

If completed, the acquisition would unite two of the biggest names in digital payments.

The timing is notable. PayPal, which owns Venmo, is restructuring to spin Venmo off as a stand-alone business unit — a move widely seen as laying the groundwork for a potential sale. Stripe has reportedly expressed interest in buying PayPal outright.

PayPal is pitching an AI-led turnaround, tying automation and restructuring to $1.5 billion in savings as it cuts jobs and works to modernize its tech stack.

PayPal may not be in talks to be acquired, sources have told Semafor, after a previous news report that Stripe was sniffing around.

Stripe might be looking to buy PayPal, or parts of it, per early reports.