#StablecoinPayments According to reports on May 1, 2025, Ripple Labs has made an offer to acquire Circle Internet Financial, the issuer of the USDC stablecoin.

Here are the reported details regarding this takeover attempt and Circle's current situation:

Details of the deal's failure (according to reports):

* The Offer: Ripple reportedly offered an estimated $4 billion to $5 billion to acquire Circle.

* The Rejection: Circle reportedly rejected this offer. The main reason reported for this rejection is that the offer was deemed insufficient. This indicates that Circle believes its value is significantly higher than the amount offered by Ripple.

* Ripple's Motives: Ripple's interest in Circle appears strategic. By acquiring Circle, Ripple would acquire one of the leading players in the stablecoin ecosystem (USDC being the second-largest stablecoin by market capitalization) and its infrastructure, strengthening its position in this growing market and potentially accelerating its own stablecoin initiatives (such as its RLUSD stablecoin).

* Circle's Priority: Circle's refusal reaffirms its commitment to pursuing its IPO project as the preferred path for its future growth and valuation.

Circle's post-IPO valuation estimate:

It is crucial to understand that Circle has not yet completed its IPO as of May 2025, although it confidentially filed in January 2025. Therefore, any estimate of its post-IPO value is inherently speculative and will depend on many factors at the time of listing.

However, we can analyze the following elements:

* The rejected offer: The fact that Circle rejected a $4 billion to $5 billion offer strongly suggests that the company and its shareholders are targeting a post-IPO valuation above $5 billion.

*Previous Valuation Attempt: In a previous failed attempt to go public via a SPAC (Special Purpose Acquisition Company) in 2022, Circle was valued at approximately $9 billion. While this valuation is now dated and does not guarantee anything for the current IPO, it does give an idea of ​​the valuation potential Circle has already considered in the past.

* Influencing factors: The final valuation at the IPO will be influenced by:

* General stock market conditions.

* Circle's financial performance (revenue growth, profitability, USDC reserve management).

* The evolution of USDC market capitalization and usage.

* The regulatory landscape around stablecoins (the adoption of clear laws could be a positive catalyst).

* Investor appetite for crypto and fintech companies.

* Competition in the stablecoin market (notably with Tether).

Some analysts have been able to offer recent estimates, but they vary. Given the rejection of the $4-5 billion offer, it's reasonable to assume that Circle hopes to achieve a valuation significantly higher than this amount in its IPO, potentially in the range approaching its previous high estimates if market conditions are favorable, or at least validating a value that the market will deem fairer than Ripple's offer.

In conclusion, the acquisition agreement failed because Circle deemed Ripple's offer too low compared to the value it believes it can achieve, particularly through its proposed IPO. The precise estimate of Circle's post-IPO value remains uncertain and will depend on the market, but the rejection of the $4-5 billion offer indicates that the company is aiming for a higher valuation.