Pinterest shares plunged 12% on Monday after digital payments giant PayPal said it was not interested in buying the social media network at the time, adding to speculation of a potential acquisition of $ 45 billion. Dollar ended, which would have been one of the largest mergers of the year.
PayPal “is not currently pursuing a takeover of Pinterest,” the company said in a one-sentence statement in response to market rumors about the potential takeover on Monday.
Investors reacted mixedly to the news: Pinterest’s shares were crushed by noon and tumbled 12%, while PayPal’s shares rose nearly 4%.
It was revealed last week that PayPal was looking for another large-scale acquisition, with multiple outlets reporting that the company is in early talks with Pinterest for a deal.
The Silicon Valley digital payments giant has reportedly been considering an offer to buy Pinterest for around $ 70 per share, which would have earned a valuation of more than $ 40 billion.
A deal with photo bookmarking site Pinterest, which has rolled out more online shopping features in recent years and partnered with Shopify, could have made sense for PayPal on paper as the company continues its expansion into e-commerce .
Pinterest went public in 2019 and saw sales jump nearly 50% in 2020 to $ 1.7 billion amid a surge in new users. PayPal was spun off from eBay in 2015 and today has annual sales of over $ 20 billion.