PayPal in talks to acquire Pinterest for $45bn

PayPal is in discussions with social media platform Pinterest over an acquisition for the figure of $45 billion, which works out at $70 a share.

This would be a 26 per cent premium on the idea-sharing platform’s share price earlier this week.

Pinterest’s shares boomed 13 per cent to $63.31 following the news of the discussions with PayPal, giving the company a  market capitalisation of more than $40 billion.

PayPal’s shares however fell by almost 5 per cent to $258.36 last night.

The news comes as part of PayPal’s aim to become a super-app, similar to that of WeChat in China, which serves as both a payment and social media platform.

READ MORE: Pinterest adds ecommerce capabilities to enable creators to earn money

PayPal has made a series of acquisitions over the last 3 years, purchasing Swedish payment firm Zettle, Japanese BNPL firm Paidy and price comparison site Honey.

The payment firm’s president Dan Schulman said that his company’s “consumer wallet super app” was being rolled out in the US, offering savings, ecommerce, cryptocurrency and messaging capabilities.

The company is also in the early stages of building a stock trading platform, said people familiar with the matter.

The talks with with Pinterest come after the company’s co-founder and design chief announced he was stepping down from his role.

Pinterest recently rolled out a range of ecommerce features to its app in a redesign, offering creators the chance to monetise their content with shoppable links in posts.

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