PayPal in talks with Pinterest over $ 45 billion buyout – .

PayPal in talks with Pinterest over $ 45 billion buyout – .

PayPal, the online payments company, is in talks to acquire social media group Pinterest for around $ 45 billion, which could lead to one of the biggest corporate buyouts of the year, have said two people with direct knowledge of the subject.

Pinterest’s board has received a stock offer of $ 70 primarily based on shares of PayPal, which seeks to capitalize on its relatively high share price as the currency for a trade. The timing of the approach remained uncertain.

Pinterest shares jumped more than 13% to $ 63.31 on news of the talks, which were first reported by Bloomberg. PayPal stock fell more than 5%. The rise in the share price gave Pinterest a market cap of over $ 40 billion.

Pinterest declined to comment. PayPal did not respond to requests for comment.

PayPal recently acquired Paidy, a Japanese “buy now, pay later” company for $ 2.7 billion, as it seeks to enter the popular financial service that allows consumers to spread costs over a period of time. , usually without paying interest.

The company has used its high stock price, which has risen more than 150% since the March 2020 low, to fuel its acquisition strategy to become a super app like WeChat in China, which offers payments and also acts. as a social media platform. .

In July, Dan Schulman, president of PayPal, said that a “super consumer wallet app” was being rolled out in the United States with savings, e-commerce, cryptocurrency and messaging capabilities. . The company is also in the early stages of building a stock trading platform, people familiar with the matter said.

Pinterest has over 450 million users, who can post – or pin – pictures of their interests on boards and send messages to others. It has also deepened its push into e-commerce with new shopping tools.

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Since its public debut in April 2019, Pinterest shares have nearly tripled. Her business initially benefited from the pandemic as stay-at-home warrants forced people to buy online, but she struggled to keep up.

The San Francisco-based company’s July earnings report fell short of Wall Street expectations with weaker-than-expected user growth, wiping around $ 8 billion from its market value in a single daytime.

News of the deal talks comes a week after Evan Sharp, co-founder and chief design officer of Pinterest, announced he was stepping down. The company has recently been criticized for its internal culture, including allegations of gender discrimination by former employees.

The Financial Times reported earlier this year that Microsoft had also approached Pinterest about a potential deal as it sought to build a portfolio of active online communities, though talks have not been underway at the moment. ‘era.


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