PayPal Says It Isn’t Pursuing Pinterest ‘at This Time.’ Pinterest Stock Is Getting Crushed.
A PayPal acquisition of Pinterest would have been the largest ever for a social-media company.
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PayPal said it isn’t pursuing an acquisition of digital pinboard site Pinterest “at this time,” following reports it was in discussions.
Bloomberg had reported last week that the payments company had approached Pinterest about a potential deal, based on a $70-a-share valuation for the social-media company, which would have given it a $45 billion market capitalization.
PayPal Holdings (ticker: PYPL) shares were up 5.6% in premarket trading Monday, with Pinterest (PINS) shares down 15% to $49.41 after gaining 8.3% last week on news of the potential deal.
The acquisition would have been the largest ever for a social-media company, trumping Microsoft
‘s $26 billion purchase of LinkedIn five years ago.
It would have brought PayPal control of a key social-media site that influences shoppers’ behavior, as well as new advertising revenue.
PayPal shares are still down 6% since rumors of a deal surfaced last week. But the stock is up 150% since January 2020 on the back of the online shopping boom, giving the company a $280 billion market capitalization.
That gives CEO Dan Schulman the firepower he needs to extend the company’s footprint in all things related to shopping and finance.
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