PayPal Holdings (PYPL), responding to reports it will buy Pinterest (PINS), said Monday in a terse statement that it is not “pursuing an acquisition at this time.” PayPal stock rose on the news while PINS stock tumbled.
PayPal stock had retreated 11% amid the reports. But some analysts viewed a deal favorably, saying it would expand PayPal’s role in online shopping and advertising.
Management at both companies will likely face questions over purported talks. PayPal reports earnings on Nov. 8. An earnings report for PINS stock comes on Nov. 4.
PayPal’s offer was said to be around $70 per share, with a deal valued at around $45 billion. It’s unclear how much equity or cash PayPal would have used to finance the deal.
PayPal Stock Rises On News
PayPal stock rose 4.7% to 251.60 in early action on the stock market today. Pinterest stock tumbled 13.4% to 50.27. PINS stock rose 10% last week on PayPal takeover buzz.
Pinterest ended the June quarter with 454 million monthly active users. But its user growth has slowed. About 80% of Pinterest’s users are outside the U.S., primarily in India/China.
Pinterest is a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. All of its revenue comes from advertising.
PayPal has 403 million consumer users of its online checkout button. The company has told PayPal stock analysts it’s aiming for 750 million users by 2025.
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