PayPal’s $45 Billion Pinterest Deal: What You Need to Know About Your Money
PayPal could be looking at acquiring Pinterest, Bloomberg reported today. Following the news, the company’s stock was halted twice, before gaining 11% as of late morning. PayPal, meanwhile, dipped more than 3% on the news, according to CNBC.
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Bloomberg reports that San Jose, California-based PayPal has recently approached Pinterest about a potential deal, the people said, asking not to be identified because the talks are private. The companies have discussed a potential price of around $70 a share, which would value Pinterest at roughly $39 billion, one of the people said, according to Bloomberg.
PayPal has largely benefitted from the boom in online shopping since the start of the pandemic. A potential acquisition of Pinterest could push the company into social commerce, a growing space that other tech giants are already working on, according to CNBC.
Jonathan Anastas, chairman at Alpha Tech, a technology company that focuses on emerging industries like esports, told GOBankingRates that a Pinterest acquisition by PayPal could make sense on a number of levels.
“It capitalizes on social shopping, which benefits both sides of the transaction. It dips a toe in the water on a Metaverse-light, where goods can be bought and sold inside virtual experiences. The deal also expands the idea of social platforms in the US to include financial products and other categories as has long been done in China,” he says. “Jack Dorsey was a first mover on this with Twitter plus Square plus Tidal.
“My only concern is that both brands, Pinterest and PayPal, feel very internet 1.5 as we move to internet 3.0. Now, that likely means good current customer synergies today. But perhaps at the expense of reaching Gen Y who are on TikTok and Ca$h app or Coinbase,” he adds.
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Last month, PayPal acquired Paidy, a two-sided payment platform and provider of buy now, pay later solutions in Japan, for S$2.7 billion, principally in cash, according to an announcement.
Pinterest was up 6% mid-day.
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This article originally appeared on GOBankingRates.com: PayPal’s $45 Billion Pinterest Deal: What You Need to Know About Your Money
