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PayPal: Currently no interest in taking over Pinterest

The payment service provider Paypal has denied reports of a possible takeover of the Pinterest online pin board. As PayPal announced in a very brief statement on Sunday, PayPal is “currently” not pursuing any acquisition of Pinterest. Corresponding takeover rumors had emerged after Bloomberg]/ i]reported ongoing talks on an acquisition on Wednesday.

In the report by [i]Bloomberg On Wednesday it said that Paypal had made a takeover offer to Pinterest worth around $ 45 billion, which would have meant a price of $ 70 per Pinterest share. Neither company initially responded to these rumors. However, effects on the share prices of the companies became apparent very quickly: The PayPal share collapsed by more than 11 percent. At the close of trading on Friday, it was quoted at 207.30 euros. On Wednesday it was still at 232.45 euros. At the same time, Pinterest benefited from rumors of a takeover by PayPal. It initially jumped from 55.96 euros to a high of 63.33 euros on Thursday. In the meantime, the price has leveled off at 58.06 euros.

It is unclear whether there have been no discussions between the companies about a possible purchase of Pinterest or whether these have fizzled out. The message from PayPal largely rules out a timely takeover of Pinterest.

The Pinterest online pinboard doesn’t seem to fit into the PayPal portfolio anyway, as it is based on different business models. Pinterest is financed through advertising, PayPal earns its money as a payment service provider. As a possible reason for the takeover, PayPal’s entry into social commerce was assumed, as the Handelsblatt suspected.

In September, PayPal announced the acquisition of the Japanese buy-now-pay-later service Paidy for 2.7 billion dollars, with the help of which PayPal wants to offer options for later payments such as installment payments and other payment options.

(olb)

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