![]() Pinterest was valued at about $13 billion when it went public in 2019 and since then, the company saw a huge spike in users looking for crafts and DIY project ideas because of the COVID-19 pandemic. It will also help the company diversify its income with advertising revenue. With the acquisition of Pinterest, PayPal would be able to capture more of the e-commerce growth as online shoppers are following influencers on platforms. As the news surfaced online, the shares of PayPal fell while Pinterest saw a surge in its shares. However, do note that the deal isn’t certain yet and the terms associated with it could get changed. If everything goes as expected for the online payments provider, then the deal could be announced early next month when PayPal reports its quarterly earnings. ![]() Currently, Microsoft’s acquisition of LinkedIn for $26.2 billion in the year 2016 is the biggest transaction in this category.Ī source aware of the development has said that PayPal is offering $70 per share for the acquisition of Pinterest, mostly in stock. If the deal goes through, then it will mark the biggest acquisition of a social media company so far. The development was first reported by Bloomberg, citing people aware of the matter but didn’t want to be identified. Over the past few years, PayPal has displayed growing ambitions to increase its footprint in online shopping through a series of acquisitions, including a $4-billion deal to buy online coupon finder Honey Science in 2019, a $2.7-billion deal to buy Japanese buy-now-pay-later firm Paidy in September this year, and a deal to buy return-service provider Happy Returns in May.PayPal, one of the leading and well-known online payments platforms, is in advanced talks to acquire digital pinboard platform Pinterest for $45 billion. Sharp founded the San Francisco, California-based online scrapbook and photo-sharing platform along with Ben Silbermann, who is the company’s CEO, and Paul Sciarra, who left in 2012. News of the potential deal comes less than a week after Pinterest co-founder Evan Sharp announced plans to leave the company to join LoveFrom, a firm led by Jony Ive, the designer of many iconic Apple products. The sources requested anonymity as the discussions are confidential. San Jose, California-based PayPal and Pinterest did not immediately respond to requests for comment. ![]() Pinterest’s shares, which had jumped over 13% earlier in the day forcing trading to be halted briefly, have shed about 16% of their value this year. ![]() PayPal’s shares were down about 3.5% on Wednesday, while Pinterest was up over 10% at $61.55. PayPal’s shares were down about 3.5% on Wednesday, while Pinterest was up over 10% The pandemic boost over the past 12 months have driven up its shares by about 36%, giving it a market capitalisation of nearly $320-billion. The payments behemoth was among the big winners of the pandemic as more people used its services to shop online and pay bills to avoid stepping out. PayPal plans to finance the acquisition mostly through stock, the sources said. The per share price would represent a 26% premium to Pinterest’s closing price of $55.58 on Tuesday. PayPal has made an offer to buy digital pinboard site Pinterest for US$45-billion, people familiar with the matter said on Wednesday, a combination that could herald more tie-ups between fintech and social media companies in e-ecommerce. ![]()
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