PayPal is in early talks to buy Pinterest, reports say
PayPal (Nasdaq: PYPL) is in early talks to buy Pinterest (NYSE: PINS), per multiple reports.
Why it matters: This could bring Pinterest closer to becoming the e-commerce company it's always wanted to be, while giving PayPal a large new stream of payments volume.
Trader reax: Pinterest shares rose 12.8% on the news, bringing its market cap past the $40 billion mark, while PayPal shares sank by 4.9%. Pinterest's largest outside shareholder is T. Rowe Price, with a 7.2% stake.
The bottom line: "PayPal rode a wave of digital-payment adoption over the course of the coronavirus pandemic to post record numbers of users and transaction volumes. That has propelled the stock, which would likely be used to help pay for any Pinterest deal, and given the company a market value of some $300 billion." — Dana Cimilluca and Cara Lombardo, WSJ