PayPal, the digital payments behemoth, indicated on Sunday, October 24th, 2021 that it would not be interested in acquiring Pinterest. Days of conjecture over a $45 billion deal are coming to an end. PayPal said it is “not pursuing a purchase of Pinterest at this moment” in a brief statement.
The company is situated in the city of San Jose in the state of California. According to Bloomberg News last week, PayPal has approached Pinterest about a possible partnership. According to people familiar with the situation, the firms discussed a potential price of roughly $70 per share, valuing Pinterest at around $45 billion.
“In response to market rumours about a prospective Pinterest acquisition by PayPal, PayPal confirmed that it is not pursuing an acquisition of Pinterest at this time,” the business said in a one-sentence statement on Monday.
PayPal’s aim to become the next global super app would have been bolstered if it had acquired Pinterest, a visual search and scrapbooking site. The startup was formed in 1998 by a group that includes Peter Thiel and Elon Musk to make it easier for people to pay for products online at a time when many people still used paper checks or cash to do so.
Meanwhile, Pinterest’s stock rose 13% on Wednesday after the News reported that two companies were in negotiations. Since then, the stock has lost most of its gains, closing at $58 on Friday. Over the preceding three trading days, PayPal has lost approximately 12% of its value. A plan to buy Pinterest would have given the payments company, which paid $4 billion for the couponing and price comparison app last year, a new source of revenue. Honey Science will provide even more information on the products that people are purchasing, as well as the opportunity to market or offer discounts based on that information.