PayPal is reportedly exploring to acquire Pinterest for $45 billion

PayPal is reportedly exploring the purchase of the digital pinboard site Pinterest Inc for $45 billion, according to multiple reports from Bloomberg and Reuters. Citing people familiar with the matter said on Wednesday, Reuters reported that San Jose, California-based PayPal has “recently approached” Pinterest about a potential buyout.

If the deal goes through, the combined company could herald more tie-ups between financial technology and social media companies in eCommerce. Bloomberg said PayPal could pay around $70 a share, which would value Pinterest at about $39 billion.

Pinterest’s stock jumped by about 12% on the news, trading at just above $62 by midday Wednesday. That’s still down from a 52-week-high of $89.90. Pinterest declined to comment on the report. PayPal had not responded to requests for comment as of press time. The sources told the media outlets that PayPal plans to finance the acquisition mostly through stock.

In the last 18 months, PayPal has become one of the biggest winners of the pandemic as more people used its services to shop online and pay bills to avoid stepping out. The pandemic boost over the past 12 months has driven up its shares by about 36%, giving it a market capitalization of nearly $320 billion.

PayPal’s shares were down about 3.5% on Wednesday, while Pinterest was up over 10% at $61.55. Pinterest’s shares, which had jumped over 13% earlier in the day forcing trading to be halted briefly, have shed about 16% of their value this year.

Meanwhile, PayPal has gone on a buying spree in recent months. In September, PayPal acquired Japanese buy now, pay later (BNPL) fintech startup Paidy in a $2.7 billion largely cash deal. In an investor presentation, PayPal said the acquisition of Paidy will enable the company to expand its footprint in Japan where online shopping volume has more than tripled over the last 10 years to some $200 billion, but more than two-thirds of all purchases are still paid for in cash.