Tech

PayPal negotiates to buy Pinterest for $ 45 billion

..PayPal People familiar with the matter are in talks to buy the digital pinboard platform Pinterest for $ 45 billion (£ 32.6 billion).

Transactions are said to be “late negotiations”, confidential sources Said Bloomberg On Wednesday, Pinterest was offered $ 70 per share, most reportedly in stock.

If accepted, the deal will be the largest acquisition of a social media company to date, beyond the acquisition of Microsoft. LinkedIn’s $ 26.2 billion acquisition PayPal is likely to announce the acquisition by the time it reports its quarterly results on November 8, according to one source. However, the transaction remains uncertain and its terms are subject to change.

Pinterest’s share price rose 12.8% to $ 62.68 on news of a potential acquisition. CEO Ben Silbermann’s net worth has skyrocketed from an estimated $ 400 million to $ 3.8 million. Meanwhile, PayPal closed at $ 258.36, down 4.9%. Neither company was able to get immediate comments.

Founded in 2019, Pinterest allows users to “pin” posts such as cooking recipes and decoration ideas, organize them in folders, and share them with friends. It makes its money by getting companies to promote their services through advertised posts.

PayPal’s interest in social media platforms stems from changing retail conditions. Customers choose to buy products advertised by “influencers,” a popular social media user with a high percentage of followers and engagement. This trend is also seen on other social media platforms. May 2020, Instagram and Facebook introduce the shopPartnership between TikTok and the e-commerce giant, while allowing users to view and purchase products directly from the company’s Facebook or Instagram profile Shopify Allows retail brands to link their product catalogs to the app.

Pinterest had previously negotiated an acquisition by Microsoft, but the deal wasn’t closed in February 2021 after Pinterest expressed its desire to remain independent. This was the second time Microsoft tried to buy a large social media platform. Bid failure Take over China’s video sharing app Ticktaku..

PayPal negotiates to buy Pinterest for $ 45 billion

Source link PayPal negotiates to buy Pinterest for $ 45 billion

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