Paypal denies that it wants to buy Pinterest for €34 billion

[Update 10/26/21] Last week CNBC announced that the online payment giant Paypal wanted to buy the social network Pinterest, for which it would be willing to pay 40,000 million dollars (around 34,000 million euros). On Monday the 25th it was Paypal itself who was in charge of denying this operation, which led to a drop in the stock market of up to 12% for Pinterest shares.

A striking operation

Currently, the great technological giants are redoubling their efforts in social eCommerce, and just to give an example we have Instagram, the great visual social network that offers new in-app purchase tools every day. Last summer, the social network began to test Shop -its tab dedicated to purchases-, in addition to the fact that little by little it has been adding functions such as purchases through stories, the Explore tab, feed publications and the live streaming.

Although Paypal is one of the pioneer platforms in digital payments and a giant among virtual wallets, with the purchase of Pinterest you could go much further and integrate eCommerce directly into your business. In fact, this is not the company's first attempt to diversify its functions, since in 2019 it acquired the coupon platform Honey and a few weeks ago it also acquired Paidy, a platform specialized in credit for digital transactions.

And what can Pinterest offer you? It is a social network that in recent years has taken important steps to become a site that, in addition to offering inspiration to its users, is also focusing its efforts on becoming an eCommerce with the integration of different functions such as pins. of product, offering the possibility of purchase in the same pins, redirecting users to the seller's website.

In addition, it has a large base of active users with whom it has already achieved strong engagement and who have been segmented "naturally" based on their activity on the network. We are talking about around 380 million people who use Pinterest an average of 37 times per month, and who are also highly engaged with the content they interact with.

This purchase would have been the largest acquisition in the history of Paypal

Currently, Pinterest, which launched its initial public offering in 2019 with a valuation at that time of just over 10,000 million dollars, has a price per share of around 55 dollars (just over 47 euros). According to close sources, Paypal would have proposed offering around 70 dollars per share (about 60 euros), which would value Pinterest at 40,000 million dollars (34,000 million euros). Had it been made, this would have been the largest acquisition in Paypal's history.

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