PayPal Holdings, Inc. (NasdaqGS:PYPL) is exploring an acquisition of social media company Pinterest, Inc. (NYSE:PINS), people with knowledge of the matter said. PayPal has recently approached Pinterest about a potential deal, the people said, asking not to be identified because the talks are private. The companies have discussed a potential price of around $70 a share, the people said. That would value Pinterest's publicly-traded Class A stock at roughly $39 billion, implying a valuation of $45 billion for the entire company when its untraded Class B shares are taken into account.
A deal at that level would represent about a 26% premium to Pinterest's October 19, 2021 closing price of $55.58. PayPal's interest comes at a complicated time for Pinterest. Terms of a transaction could still change, and there's no certainty the talks will lead to an agreement, the people said. A representative for PayPal couldn't immediately be reached, while a spokesperson for Pinterest couldn't immediately comment.