Alleged deal was estimated at $45 billion
The PayPal Group has officially stated that it will not be pursuing the acquisition of Pinterest in the near future, putting an end to speculation about the deal.
PayPal, on the other hand, was previously in talks with the Pinterest service about purchasing the company. At the same time, a share price of $70 was tentatively agreed upon.
PayPal service seeks to be considered a super app
The Pinterest app is known to be built for picture search and scrapbooking, these options reinforcing PayPal’s position in terms of becoming a super app.
In 1998, a group of specialists, which included Elon Musk and Peter Thiel, teamed up and developed a service that was designed to make it easy to pay for online purchases. And at the time, many retailers were still working with cash or checks.
The news of the negotiations between the two companies was reported by Bloomberg News on Wednesday, causing Pinterest stock to rise 13%. The stock has nearly returned to its previous high of $58 since that report. PayPal’s stock has dropped by 12% in just three days.
PayPal would have gained additional data on customer preferences and the ability to use new advertising strategies or offer various discount programs based on the data analysis if this deal had been completed, which was made possible by PayPal’s acquisition of Honey Sciense.