Payments Giant PayPal Plans To Buy Pinterest

PayPal Makes $45 Billion Offer to Acquire Pinterest

PayPal Holdings has made a $45 billion majority-shares offer to buy the popular photo-sharing site Pinterest, which could open the door to partnerships between fintech companies and social media platforms in the e-commerce space, and if the deal goes through, it will be the largest-ever social media acquisition, overtaking Microsoft’s $26.2 billion purchase of LinkedIn in 2016.

After the news was announced, PayPal’s stock fell 4.9% to close at $258.36, while Pinterest’s shares jumped 12.8% to $62.68.

The deal talks come as online shoppers are more likely to buy things they see on social media, typically following “influencers” on platforms like Instagram and TikTok for purchases, and the acquisition of Pinterest will allow PayPal to take a larger share of the growing e-commerce market and diversify its sources of income by adding advertising revenue to its portfolio.

Paypal has made an offer of $70 per share of Pinterest stock, and the payments giant hopes to successfully conclude discussions and reveal the deal when it announces its quarterly results on November 8, noting that no deal has been confirmed yet and terms and details of the offer may change, and the source was not disclosed due to the confidentiality of the news.

PayPal’s bid is 26% more valuable than Pinterest’s closing price of $55.58 yesterday, and the bid is roughly 62 times the social media platform’s earnings over the past 12 months before interest, tax, depreciation, and depreciation. On the same scale, Microsoft paid 79 times LinkedIn’s profits when it took it all in cash.

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