PayPal would offer $ 45 billion to buy Pinterest

PayPal would offer $ 45 billion to buy Pinterest

PayPal Holdings Inc. has made an offer to buy digital signage site Pinterest Inc for $ 45 billion, people familiar with the matter said on Wednesday, a combination that could herald more links between fintech and media companies. social in e-commerce.

The price per share would represent a 26% premium over Pinterest’s closing price of $ 55.58 on Tuesday.

PayPal plans to fund the acquisition primarily through stocks, the sources said.

The payments giant has been among the big winners in the pandemic, as more people have used its services to shop online and pay bills to avoid going out. The pandemic boost over the past 12 months has pushed its shares up about 36%, giving it a market cap of nearly $ 320 billion.

Shares of PayPal were down about 3.5% on Wednesday, while Pinterest rose more than 10% to $ 61.55. Shares of Pinterest, which had jumped more than 13% earlier in the day, forcing trading to be briefly halted, have lost about 16% of their value this year.

PayPal and Pinterest, based in San Jose, Calif., Did not immediately respond to requests for comment from Reuters. The sources requested anonymity as the discussions are confidential.

News of the potential deal comes less than a week after Pinterest co-founder Evan Sharp announced his intention to leave the company to join LoveFrom, a company run by Jony Ive, the designer of many iconic products from the company. ‘Apple.

Sharp founded the San Francisco, Calif., Online photo and album sharing platform with Ben Silbermann, the company’s chief executive, and Paul Sciarra, who left in 2012.

In recent years, PayPal has shown growing ambitions to expand its footprint in online shopping through a series of acquisitions, including a US $ 4 billion deal to buy online coupon finder Honey Science in 2019. , a $ 2.7 billion deal to buy Japanese purchases. the now-pay-later company Paidy (BNPL) in September this year, and an agreement to purchase the Happy Returns return service provider in May.

Bloomberg News reported on the talks between PayPal and Pinterest earlier on Wednesday.

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