PayPal reportedly in advanced talks to acquire Pinterest for $45 billion

Author: No Comments Share:

PayPal, one of the leading and well-known online payments platforms, is in advanced talks to acquire digital pinboard platform Pinterest for $45 billion. The development was first reported by Bloomberg, citing people aware of the matter but didn’t want to be identified.

If the deal goes through, then it will mark the biggest acquisition of a social media company so far. Currently, Microsoft’s acquisition of LinkedIn for $26.2 billion in the year 2016 is the biggest transaction in this category.

A source aware of the development has said that PayPal is offering $70 per share for the acquisition of Pinterest, mostly in stock. 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.

However, do note that the deal isn’t certain yet and the terms associated with it could get changed. As the news surfaced online, the shares of PayPal fell while Pinterest saw a surge in its shares.

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. It will also help the company diversify its income with advertising revenue.

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. The company has warned about slowing user growth, especially in the US, as lockdowns eased.

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.

PayPal has turned towards acquisition to boost its e-commerce offerings. 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. It has also acquired return-service provider Happy Returns in May this year.

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.

Source: GizmoChina

Previous Article

Facebook is Planning to Rebrand the Company Name

Next Article

MediaTek Dimensity 2000 and Snapdragon 898 details strongly indicate MediaTek is Superior in Performance

You May also Like:

Leave a Reply

Your email address will not be published. Required fields are marked *