PayPal Inc. has stated that it is not seeking to acquire Pinterest Inc. at this time, in response to media reports indicating that it was in talks to purchase the digital pinboard company for up to $45 billion. PayPal's shares rose by 6% to $255 in pre-market trading on Monday, while Pinterest's shares fell approximately 10% to $52.50.
Bloomberg News first reported the companies' discussions last Wednesday, which were later confirmed by Reuters. At that time, a source told Reuters that PayPal had offered $70 per share, mostly in stock, for Pinterest. However, sources warned Reuters that no agreement had been confirmed and that terms could change.
The Pinterest deal would have represented the largest acquisition of a social media company by announced price, far surpassing Microsoft's acquisition of LinkedIn for $26.2 billion in 2016. PayPal, which has been among the biggest winners during the pandemic, has completed a few acquisition deals this year, including its $2.7 billion acquisition of the Japanese company Paidy. It also acquired Happy Returns, a company that aids online shoppers in returning unwanted goods, for an undisclosed amount in May, aiming to enhance its e-commerce offerings and leverage its previous acquisition of the online coupon search tool Honey Science for $4 billion in 2019.
PayPal did not provide additional details in its statement, and both companies did not respond to requests for comment. Pinterest stands at a crossroads after co-founder Evan Sharp announced earlier this month that he would step down from his role as Chief Creative Officer to join LoveFrom, a firm led by Jony Ive, the designer of many Apple products.
