The companies would be discussing a potential price of 70 dollars per share, which would value Pinterest at approximately 39,000 million dollars (about 33,460 million euros), according to the second agency. The price would represent a premium of 26% over the 55.58 dollars at which Pinterest closed on the stock market last Tuesday. The shares of the social network had fallen 16% so far this year, which gave it a market value of about $36 billion.
Neither company has confirmed the talks, but the market has already spoken. Pinterest shares are up more than 13.5% while PayPal shares are down almost 6%.
According to Bloomberg, the pull of e-commerce, especially in the wake of the pandemic, has helped PayPal’s stock more than double since the beginning of last year, giving the company a market cap of nearly $320 billion. The company’s momentum gives it financial muscle that it could use for acquisitions.
Both agencies recall that PayPal’s interest in Pinterest comes at a difficult time for the latter. A few days ago it became known that its co-founder, Evan Sharp, was leaving the company to join LoveFrom, a company led by Jony Ive, the popular designer of many iconic Apple products. The social network has also suffered a reputational blow, after facing several accusations from former employees of discriminating against female workers.
Sharp founded Pinterest with Ben Silbermann, the company’s CEO, and Paul Sciarra, who left the company in 2012. The social network went public in April 2019, with a valuation of about $10 billion.
Pinterest, which has around 500 million users, is a platform where most people go for inspiration and to find things they like, but where people are increasingly going in with the intention of making a purchase. The company has been launching features for some time now to improve the shopping experience for users and increase the presence and visibility of companies on its platform, driving a certain change in its business model.
Perhaps because of the role that the social network can play in e-commerce, it is a desirable piece for PayPal. And surely, this company will not lose sight of how Facebook is trying to make Instagram an app oriented to the sale of products, while Mark Zuckerberg’s company also seeks to enter into payments with its cryptocurrency.