PayPal Is Allegedly Looking To Buy Pinterest for US$45M

Payment company PayPal Holdings, Inc. was recently reported to have approached social media company Pinterest Inc. with an acquisition deal.

PayPal's headquarters in San Jose, California, U.S.A. Credit: PayPal

According to a Reuters report, people familiar with the matter who asked to remain anonymous said that PayPal offered to buy Pinterest for US$45 billion, which could be the start of more financial technology and social media tie-ups in the e-commerce market.


One of the sources said that PayPal offered Pinterest US$70 per share, which is mostly in stock, and that PayPal hopes to close the deal by the time it reports its quarterly earnings on 8 November 2021.


However, the sources said that the deal's terms are still subject to change.

This offer from PayPal comes at a time when internet shoppers were found to have been buying stuff advertised by "influencers" on social media platforms like Instagram and TikTok. As such, the deal would allow PayPal to increase its growth in the e-commerce market and diversify its income through advertising revenue.


Bloomberg first reported the talks between PayPal and Pinterest on 20 October 2021, saying that the deal could be "the biggest technology deal of the year" and move PayPal closer to its goal of becoming a "super app".


PayPal was previously reported to have been acquiring companies to boost its e-commerce offerings. For instance, the payment company acquired Japanese fintech firm Paidy for US$2.7 billion to include Paidy's but-now-pay-later (BNPL) setup to its platform.


Both companies benefited from the pandemic-caused lockdowns, which kept people in their homes. PayPal saw a significant increase in people using its platform to shop online or pay their bills without going outside. This increase also came along with a considerable increase in revenue. Similarly, Pinterest saw a surge of users looking for crafts and Do-It-Yourself project ideas.

Pinterest's number of monthly active users. Credit: Statista

However, as lockdowns were gradually lifted, the number of users of both platforms decreased. Pinterest even warned about its slowing user growth and expected its revenue growth to come from deeper engagements with its existing users instead.


Both PayPal and Pinterest have yet to comment on the report.

 

Written by John Paul Joaquin

 

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