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Digital payments company PayPal has offered to buy digital pinboard company Pinterest in a deal worth nearly $45 billion, according to people familiar with the discussions.
People said PayPal is offering Pinterest about $70 per share, a 25 percent increase from Pinterest’s opening price on Wednesday. Pinterest shares rose nearly 13 percent following reports of the potential deal, valuing the company to $39 billion, and trading on the New York Stock Exchange was halted twice Wednesday. Bloomberg first reported deal negotiations news.
A Pinterest spokesperson declined to comment. PayPal did not respond to a request for comment.
If a deal were to be completed, it would be one of the largest consumer internet purchases in recent history. Salesforce’s acquisition of Slack $27.7 billion last year. It will also be among the largest acquisitions for PayPal, which left eBay in 2015 and was valued at $306 billion.
PayPal is facing increasing competition in digital payments. Stripe, a startup that provides payment services to businesses, has gained momentum in recent years. Private valuation of $95 billion.
In recent years PayPal has acquired Paidy, a Japanese loan company, and iZettle, a Swedish payment processor. These deals had a more direct link to digital payment services that people used to pay for goods and services online without needing a credit card.
Pinterest, which people use to save images on digital boards, makes money by selling ads. Because most of its “Pins” are products, the company offers “Pins Purchasable” so users can shop directly from within the app. Facebook-owned photo sharing application Instagram has recently made a similar move to e-commerce.
Pinterest was founded in 2009 and went public in 2019. Over the past year, the share price has reached new highs as it reports strong revenue and user growth amid the pandemic.
Pinterest has also faced criticism after lawsuits and allegations of mistreatment of female employees. Last year, two Pinterest employees talked about the sexism and racism they experience at the company. Best female manager on Pinterest to sue for discrimination and retaliation, Leads to a $22.5 million deal. Outrage over these stories has mobilized several hundred Pinterest employees. stage a virtual strike last year.
This year, a woman says she co-founded Pinterest with her founders. to sue company for breach of implied contract. Pinterest said the allegations were unfounded.
This is a developing story. Check back for updates.
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