PayPal has announced that it would not pursue the acquisition of Pinterest, therefore putting an end to rumors about a transaction that might have been worth more than $45 billion (roughly Rs 3,37,584 crore). PayPal, in a one-line response, rejected rumors that the company had approached the pinboard site Pinterest about a possible acquisition, as reported by Bloomberg News last week.
As a result of market speculation about PayPal’s possible acquisition of the social media platform Pinterest, the San Jose, California-based firm said that it is not seeking acquisition of the platform. Pinterest, on the other hand, has not mentioned anything about the matter.
A possible purchase of Pinterest would have provided the incentive for PayPal, which was created by Elon Musk and Peter Thiel in 1998, to transition from a payment processing service into a retail application. Pinterest is a treasure mine of all types of goods that can be found by performing a visual search on the site. It even allows users to create scrapbooks.
By acquiring Pinterest, PayPal would have gained access to a massive collection of items as well as data on consumer behavior, allowing it to provide deals and discounts to its customers in the future. A more effective application would have been to provide personalized discounts to PayPal and Pinterest users, respectively.
Pinterest’s stock increased by as much as 13 percent on Wednesday last week following a story by Bloomberg News regarding prospective negotiations between the pinboard website and online payments giant, PayPal, according to the article.
According to Bloomberg News, which cited people familiar with the matter, both businesses had agreed on a possible price of $70 per share. Pinterest would have been valued at more than $45 billion if it had been sold at that price.
A new super app from PayPal, which combines its banking services with shopping facilities and even cryptocurrency capabilities, was just unveiled. The super app,’ as it has been dubbed, would almost certainly have benefited from Pinterest’s extraordinarily large and competent product database if it had been available.
PayPal has launched the first version of its super app, but the company expects it to grow significantly in scope and functionality in the future. The PayPal super app includes services such as direct deposit, bill payments, a digital wallet, and even a savings bank account service – in cooperation with Synchrony Bank – in addition to other features.