PayPal evaluates the acquisition of Pinterest. According to Bloomberg, PayPal has recently reached out to social media for a potential acquisition at around $ 70 per share, which would value Pinterest at around $ 45 billion. Pinterest according to Statista has 454 million active users. “While we see the merit (and potential for revenue synergy) around the two companies looking to combine their strengths to pursue social commerce opportunities (both on Pinterest and in-app for PayPal / Venmo), the rationale for the acquisition of Pinterest compared to the creation of a partnership is less clear “, note today the analysts of Credit Suisse.
For PayPal, the main advantage is Pinterest’s large user base of around 454 million (Q2 2021) and the ability to add new international PayPal users (around 80% of Pinterest users are located outside the United States. , including markets with lower GDP per capita such as India, Brazil, Southeast Asia). One question that Credit Suisse asks is about how PayPal’s relationships with large advertising-based technology platforms will evolve if this acquisition is successful, given that Pinterest is a direct competitor (PayPal works with Facebook Marketplace, Instagram Shopping, Google, etc. .).