PayPal Holdings Inc. is considering buying social networking firm Pinterest Inc., according to individuals familiar with the situation.
The company is based in San Jose, California. PayPal has approached Pinterest about a possible agreement, according to the people, who asked not to be identified since the discussions are private. According to the persons, the firms have discussed a potential price of roughly $70 per share.
Pinterest’s stock soared in New York trade on Wednesday, causing a trading pause. They increased by as much as 19 percent, reaching a high of $66 per share. At 11:47 a.m. in New York, PayPal’s stock was down 3.3 percent, giving the business a market worth of $309 billion.
PayPal shares have more than doubled in value since the beginning of last year, giving the business a market valuation of roughly $320 billion. These earnings have provided it with a strong currency that it may utilize to make purchases.
The interest from PayPal comes at a difficult time for Pinterest. This month, Facebook revealed that co-founder Evan Sharp, who managed the company’s design and product teams, is stepping down. Pinterest has also been dealing with a number of complaints from former employees alleging that the company discriminated against female employees.
Pinterest went public in April 2019, pricing the firm at slightly over $10 billion in its initial public offering.
The terms of a sale could yet alter, and there’s no guarantee that the talks would result in a deal, according to the sources. A PayPal representative could not be reached right away, and a Pinterest spokesman could not be reached right away.
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