Paypal in $45 billion bid for Pinterest -sources By Reuters
© Reuters. FILE PHOTO: The PayPal logo appears on a smartphone in front of the same logo that appears in this image dated September 8, 2021. REUTERS / Dado Ruvic / Illustration
By Greg Roumeliotis
(Reuters) -PayPal Holdings Inc made an offer to buy the Pinterest (NYSE 🙂 Inc digital bulletin board site for $ 45 billion, people familiar with the matter said Wednesday, a combination that further links financial technology and social Media could announce companies in e-commerce.
The price per share would be a 26% mark-up on Pinterest’s closing price of $ 55.58 on Tuesday.
PayPal (NASDAQ 🙂 plans to fund the acquisition primarily through stocks, the sources said.
The payment giant was among the big winners from the pandemic as more and more people used its services to shop online and pay bills to avoid getting out. The pandemic surge over the past 12 months has propelled its stocks about 36%, giving it a market cap of nearly $ 320 billion.
PayPal’s shares were down about 3.5% on Wednesday, while Pinterest rose over 10% to $ 61.55. Pinterest stock, which was up over 13% earlier in the day resulting in a short-term suspension of trading, has lost about 16% of its value this year.
PayPal and Pinterest, based in San Jose, Calif., Did not immediately respond to Reuters’ requests for comment. The sources asked for anonymity as the discussions are confidential.
News of the potential deal comes less than a week after Pinterest co-founder Evan Sharp (OTC 🙂 announced plans to leave the company to join LoveFrom, a company led by Jony Ive, the designer of many iconic Apple -Products (NASDAQ :).
Sharp co-founded the San Francisco, California-based online scrapbook and photo sharing platform with Ben Silbermann, the company’s CEO, and Paul Sciarra, who left the company in 2012.
In recent years, PayPal has shown growing ambitions to expand its presence in online shopping through a series of acquisitions including a $ 4 billion deal to purchase the online coupon finder Honey Science in 2019, a 2, $ 7 billion deal to purchase Japanese Pay Later (BNPL) company Payy in September this year and an agreement to purchase returns service provider Happy Returns in May.
Bloomberg News reported on the talks between PayPal and Pinterest on Wednesday.
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