Sharp founded the online scrapbook and photo-sharing platform along with Ben Silbermann, who is the company's chief executive officer, and Paul Sciarra, who left in 2012. News of the potential deal comes less than a week after Pinterest co-founder Evan Sharp announced plans to leave the company to join LoveFrom, a firm led by Jony Ive, the designer of many iconic Apple products. PayPal's shares were down about 3.5%, while Pinterest's shares were up over 10% at $61.55. The source requested anonymity as the discussions are confidential. Key stories on are available to premium subscribers only. TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH. PayPal and Pinterest did not immediately respond to Reuters' requests for comment. co-founder Evan Sharp is stepping down from the company and plans to join LoveFrom, the design firm founded by former Apple Inc. The price would represent a 26% premium to Pinterest's closing price of $55.58 on Tuesday. The companies have discussed a potential price of $70 per share, which would value Pinterest at around $39 billion, according to Bloomberg News. In related news, Pinterest co-founder Evan Sharp announced last week that he would step down as the company’s chief creative officer to join LoveFrom, a firm led by Jony Ive, known for designing many Apple products.Payments giant PayPal Holdings Inc is in talks to buy digital pinboard site Pinterest Inc, according to a person directly familiar with the matter. It has also acquired return-service provider Happy Returns in May this year. In 2019, the company purchased Honey Science for $4 billion, and earlier this year, it acquired Japan-based Buy-Now-Pay-Later (BNPL) firm Paidy for $2.7 billion. PayPal has turned towards acquisition to boost its e-commerce offerings. The price offered by PayPal for the acquisition of Pinterest, founded in 2010, is 62 times the social media company’s earnings before interest, taxes, depreciation, and amortization over the last 12 months. The company has warned about slowing user growth, especially in the US, as lockdowns eased. Pinterest was valued at about $13 billion when it went public in 2019 and since then, the company saw a huge spike in users looking for crafts and DIY project ideas because of the COVID-19 pandemic. It will also help the company diversify its income with advertising revenue. With the acquisition of Pinterest, PayPal would be able to capture more of the e-commerce growth as online shoppers are following influencers on platforms. As the news surfaced online, the shares of PayPal fell while Pinterest saw a surge in its shares. However, do note that the deal isn’t certain yet and the terms associated with it could get changed. If everything goes as expected for the online payments provider, then the deal could be announced early next month when PayPal reports its quarterly earnings. Currently, Microsoft’s acquisition of LinkedIn for $26.2 billion in the year 2016 is the biggest transaction in this category.Ī source aware of the development has said that PayPal is offering $70 per share for the acquisition of Pinterest, mostly in stock. If the deal goes through, then it will mark the biggest acquisition of a social media company so far. The development was first reported by Bloomberg, citing people aware of the matter but didn’t want to be identified. PayPal, one of the leading and well-known online payments platforms, is in advanced talks to acquire digital pinboard platform Pinterest for $45 billion.
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