![]() Reuters and other media reported on the deal talks last week. Both companies did not respond to further requests for comment. PayPal did not provide additional details in its one-line statement. In Monday afternoon trading, PayPal shares rose 4 percent, while Pinterest fell nearly 13 percent. The allure of Pinterest shareholders getting some of the payment giant’s stock is now off the table, as is the prospect of getting access to PayPal’s massive user base. The latest development is a blow for Pinterest, which is currently grappling with the twin challenges of losing its co-founder Evan Sharp and a slowdown in user growth that has hampered its future prospects. PayPal is not pursuing an acquisition of Pinterest at this time, the digital payments company said on Monday, after several media last week reported on its talks to buy the digital pinboard site for as much as $45 billion. Pinterest-ing lead: Internet sleuth reveals ‘weird’ detail on Brian Laundrie social media accountīrian Laundrie reportedly shared cryptic messages on Pinterest Pinterest stock soars after report says PayPal may acquire it In related news, Pinterest co-founder Evan Sharp announced last week that he would step down as the company’s chief creative officer to join LoveFrom, a firm led by Jony Ive, known for designing many Apple products.How London teen’s suicide could spark social media reforms for US kids It has also acquired return-service provider Happy Returns in May this year. In 2019, the company purchased Honey Science for $4 billion, and earlier this year, it acquired Japan-based Buy-Now-Pay-Later (BNPL) firm Paidy for $2.7 billion. PayPal has turned towards acquisition to boost its e-commerce offerings. The price offered by PayPal for the acquisition of Pinterest, founded in 2010, is 62 times the social media company’s earnings before interest, taxes, depreciation, and amortization over the last 12 months. The company has warned about slowing user growth, especially in the US, as lockdowns eased. 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. PayPal, one of the leading and well-known online payments platforms, is in advanced talks to acquire digital pinboard platform Pinterest for $45 billion. ![]()
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