PayPal does not currently want to buy Pinterest

PayPal said in a statement on his website that “at the moment he is not interested in buying Pinterest-a“. Actions Pinterest-a they rose last week after news leaked that PayPal could buy a social media company. Actions PayPal-a increased by more than 3% on Nasdaq stock market, while actions Pinterest-a fell by over 12%.

Responding to what are called “market rumors”, the financial technology company announced on its website that “it is not currently trying to take over Pinterest“.

PayPal discussed buying the company at a potential price of about $ 70 per share, which would Pinterest procenjivalo by eye $ 45 billion. That assessment includes the company’s Class B preference shares. If these actions are excluded, Pinterest the contract would be estimated at $ 39 billion.

Pinterest, which allows users to create and share ideas on so-called picture boards, went public in April 2019, where it is estimated at just over $ 10 billion. Its market capitalization today amounts to about $ 37 billion.

Social trade

PayPal was encouraged to consider buying Pinterest-a after the pressure of a competitive e-commerce platform Shopify-a. Shopify has invested heavily in merging e-commerce as well fintech-a.

PayPal has greatly benefited from onilne purchase since the onset of the coronavirus pandemic. Last year, he opposed growing companies with the newspaper “buy now pay later”, with his offer “Pay in 4“. Potential acquisition Pinterest-a it could push the company into social commerce, and open up a growing space where other technology giants already operate.

Facebook for example, strongly emphasized that Instagram make it available for purchase. Last summer, he started testing a dedicated card “Shop“On your home screen. It also allows users to shop through regular posts on Instagram-u and his Explore feed-a, and tested the purchase on its short video function Reels.

Social commerce allows companies to track clicks and purchases within their apps, so they can prove ad effectiveness to advertisers. Companies could also get a share of each transaction.

Problems with monetization?

Andrew Jeffrey, a company analyst Truist Securities, said he was skeptical about the merger PayPal-a i Pinterest-a.

“This move to make another one”online“The deal, even with social media, just doesn’t make much sense in the long run,” he said Jeffrey.

“If a company can’t make money from and with to Venmo-om, I think its growth will eventually return to growth and-with-her and that kind of slowdown is not currently included in the actions, “he said Jeffrey.

Source: CNBC


Source: PC Press by pcpress.rs.

*The article has been translated based on the content of PC Press by pcpress.rs. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!