The giant Paypal has already begun to approach Pinterest to negotiate a possible purchase, a negotiation described in Bloomberg, where an anonymous source has commented that PayPal could pay about $70 per share, thus reaching about $39 billion.
At the moment neither Paypal nor Pinterest have commented anything, neither denied nor affirmed, but what has moved is the value of Pinterest shares, which rose about 12% after the news was distributed by the networks.
Pinterest shares are now above $62, up from yesterday, but down from the high of $89 it hit a few months ago.
Paypal has a market cap reaching 308 billion, so spending 40k is not ridiculous, it’s a high percentage of its own value. This indicates that it would not be a purchase to try their luck with some new project, but a very calculated movement, with a lot of sense if we take into account that Pinterest has more and more e-commerce blood and Paypal is one of the most used payment platforms in the world.
A month ago Paypal bought a Japanese payment platform for 2.7 billion to improve its business in Japan, and apparently the expansion phase won’t stop there.
About Pinterest, let’s remember that in April 2020 they introduced a new way to shop on their platform, as well as improving visual search so that people can make purchases related to products of interest. This same month of October Pinterest already said it was implementing new features to make it easy to advertise and promote brands, so everything indicates that it will be transformed into a huge online store in a very short time.
Pinterest will be a good place to buy and sell things we make at home, and if the Paypal purchase is finalized, it will be able to reach more people around the world.