PayPal has offered to buy digital Pinboard website “Pinterest” for $45 billion, people familiar with the matter said Wednesday.
The deal comes as online shopping increased significantly, and acquiring Pinterest will allow PayPal to get more e-commerce growth and diversify its income through advertising.
One source said PayPal offered $70 a share, mostly in stock, to Pinterest. “PayPal’s offer represents a 26% premium over Pinterest’s closing price of $55.58 on Tuesday. “PayPal shares fell more than 4% on the news, while Pinterest shares rose more than 14% to $63.51,” Reuters said.
“The source added that the online payments provider hopes to successfully negotiate and announce a deal by the time it announces its quarterly earnings on November 8.”