PayPal is not buying the social media image sharing site Pinterest, the payments giant said in a brief statement on Sunday (Oct. 24).
The company responded to what it called “market rumors” about its supposed acquisition of Pinterest and stated that it is “not pursuing an acquisition of Pinterest at this time.”
Numerous media accounts last week cited unnamed sources that said PayPal was in late-stage talks to acquire Pinterest for an estimated $45 billion. PayPal reportedly offered Pinterest $70 per share, roughly 25 percent higher than Pinterest was trading.
PayPal’s acquisition of Pinterest would have added fuel to PayPal’s drive to become the next global super app. In a recent PYMNTS interview, PayPal CEO Dan Schulman said that the super app concept will integrate all financial services a person uses.
“No consumer is going to have 40 or 50 apps on their phone,” Schulman said.
PayPal’s move toward super app status already includes payments, loyalty, money transfers and a high-yield savings account supplied by Synchrony Bank. A wallet tab manages payment options and direct deposit, and a finance tab provides access to high-yield savings and crypto capabilities.”
When rumors of the deal surfaced, Pinterest shares surged while PayPal dropped. Once the deal was declared dead, PayPal rebounded while Pinterest declined.
Pinterest went public in April 2019 at a valuation just past $10 billion. Its market cap today is roughly $37 billion.
Founded in Silicon Valley in 1998 by Peter Thiel, Elon Musk, Max Levchin and four others, PayPal introduced digital payments to people when paper checks and money orders were used for eCommerce transactions.
Pinterest is an image sharing and social media platform that enables the saving and discovery of information in the form of pinboards. It was founded in 2009 in San Francisco by Ben Silbermann, who serves as CEO, Evan Sharp, and Paul Sciarra.