October 21, 2021
According to sources familiar with the matter, PayPal has offered to take over Pinterest for a record $45 billion.
While PayPal hopes the acquisition of Pinterest will capture more of the e-commerce growth and further diversify its revenue through advertising revenue.
The company reportedly offered $70 a share, most of it in stocks, to Pinterest and hopes to negotiate successfully and announce a deal when it reports its quarterly results on November 8.
Although this could be the largest acquisition of a social media company, surpassing Microsoft’s $26.8 billion purchase of LinkedIn in 2016, sources familiar with the matter stressed that no deal was certain and that conditions could change.
Commenting on the deal, Wedbush analysts said: “The combination would be a significant positive for PayPal’s ongoing monetization initiatives on both sides of its merchant and consumer platforms, especially if Pinterest’s social commerce platform gets integrated with Honey’s AI into PayPal’s destination app.”
For more information, read the original story in Reuters.
