PayPal said to be exploring potential acquisition of social media company Pinterest for $45 billion

guest · Oct 20, 2021

PayPal said to be exploring potential acquisition of Pinterest
October 20, 2021
https://techcrunch.com/2021/10/20/paypal-said-to-be-exploring-potential-acquisition-of-pinterest/

In what would be a blockbuster acquisition, PayPal is reportedly exploring the purchase of social media company Pinterest, according to Bloomberg.

According to the publication, San Jose, California-based PayPal has “recently approached” Pinterest about a potential buyout.
Citing an anonymous source, Bloomberg said PayPal could pay around $70 a share, which would value Pinterest at about $39 billion.
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The rumored purchase price would be in line with Pinterest’s current market cap of $40 billion. For its part, PayPal has a market cap of $308 billion.
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Last month, PayPal announced an acquisition of Paidy, a Japanese buy now, pay later (BNPL) service platform, for approximately $2.7 billion (300 billion yen), mostly in cash, to enhance its business in Japan.
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Rasheed187 · Oct 23, 2021

OK, it's official, PayPal has lost its mind. Why on earth would you spend $45 billion on Pinterest? I would stay away from the PayPal stock, companies that do a lot of expensive takeovers are a huge risk, just look at what happened to Dell, it's loaded with debt.

In Europe the same thing happened to companies like Unibail-Rodamco-Westfield and Altice, their stock crashed quite hard. I'm not saying this will happen to PayPal, because the fintech space is still pretty hot, but I think they are making a couple of strategic blunders which will sooner or later cost them.

guest · Oct 25, 2021

PayPal confirms it isn't trying to acquire Pinterest right now
The company has denied rumors of a rumored $45 billion acquisition.
October 25, 2021
https://www.engadget.com/pay-pal-says-it-isnt-trying-to-acquire-pinterest-111757954.html

PayPal has stated that it's "not pursuing an acquisition of Pinterest at this time," effectively denying rumors of an imminent $45 billion acquisition first reported by Bloomberg. The one-line release doesn't confirm or deny that the companies were ever in talks, but the response seems to end any possibility of a deal happening in the near future. Pinterest has yet to comment on the rumor.
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The deal seemed odd at first glance, considering that PayPal's banking and merchant business is far removed from a social network like Pinterest. PayPal recently acquired buy now, pay later provider Paidy and has gotten into cryptocurrency trading, but those things are at least related to its main business. However, Pinterest does have one commerce foothold with social shopping via pins that allow you to make purchases directly from the app.
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PayPal said to be exploring potential acquisition of social media company Pinterest for $45 billion

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