• Fri. Dec 3rd, 2021

PayPal says it isn’t about to purchase Pinterest, shares soar


Oct 25, 2021

U.S. funds large PayPal mentioned Sunday that it isn’t presently concerned about shopping for social media platform Pinterest.

Responding to what it referred to as “market rumors,” the monetary expertise firm mentioned in an replace on its web site that it’s “not pursuing an acquisition of Pinterest right now.”

Shares of PayPal had been up over 6% in pre-market buying and selling on the Nasdaq inventory trade, whereas shares of Pinterest had been down over 12%.

An individual acquainted with the matter advised CNBC that PayPal was in late-stage talks to purchase social media firm Pinterest on Wednesday, after it was first reported by Bloomberg.

Shares of Pinterest soared on the again of the report. The corporate’s inventory was halted twice, earlier than closing up greater than 12%. PayPal, in the meantime, closed down practically 5%.

PayPal had mentioned buying the corporate for a possible worth of round $70 a share, which might worth Pinterest at about $39 billion, based on Bloomberg.

Pinterest, which permits customers to create and share picture boards, went public in April 2019, the place it was valued at simply greater than $10 billion. Its market cap at this time sits at round $37 billion.

Social commerce

Monetization points?

Andrew Jeffrey, Belief Securities analyst, advised CNBC final Thursday that he was skeptical of a PayPal-Pinterest merger.

“A transfer to make one other on-line deal, even in social media, simply does not make quite a lot of sense long run,” Jeffrey mentioned, including that PayPal must monetize within the bodily world.

“Except the corporate can monetize off of e-com (instore) with Venmo, we predict it is progress is finally going to revert towards e-com progress and that form of deceleration is just not presently priced into the inventory,” he added.

— CNBC’s Jessica Bursztynsky and Kate Rooney contributed to this story.


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