It could well be the biggest acquisition of the year in the tech world. According to an article published by Bloomberg, PayPal has approached Pinterest to acquire the social network.
And the leader in online payments has reportedly offered to buy Pinterest at $ 70 per share, which would value it at $ 45 billion. That would represent a 26% premium over Pinterest’s closing price on Tuesday.
For now, of course, the information should be viewed with caution. And for the moment, it is not yet certain that the two parties find an agreement. But in any case, this acquisition, if it does take place, would be even bigger than Microsoft’s $ 26 billion acquisition of LinkedIn.
For its part, Reuters indicates that PayPal hopes to finish negotiations and be able to make an official announcement of its intentions before November 8, the date of the presentation of its next financial results.
But why would PayPal want to buy Pinterest?
Quite simply, an acquisition of Pinterest would allow PayPal to play a larger role in e-commerce. Indeed, like other social networks, Pinterest is gradually turning into a shopping platform, where users make purchases following the recommendations of influencers.
On the other hand, it should be noted that like PayPal, Pinterest was one of the winners of the Covid-19 crisis. Indeed, while people were confined to their homes, they rushed to social networks. For its part, PayPal has seen significant growth as more and more people have turned to online commerce to make their purchases.