![]() Pinterest has said it expects growth mainly through deeper engagement with existing users, rather than new sign-ups. Sharp founded the online scrapbook and photo-sharing platform in 2010 with Ben Silbermann, who is the company's chief executive officer, and Paul Sciarra, who left in 2012.Įarlier in October, Sharp said he would step down as chief creative officer to join LoveFrom, a firm led by Jony Ive, the designer of many Apple Inc products.Īs lockdowns have eased globally, Pinterest has warned about slowing user growth, especially in the United States, which accounts for a majority of its user base. Pinterest's shares, which had surged 13 per cent after the deal talks were reported last week, gave up nearly all its recent gains and slumped about 12 per cent to $51.1 per share. PayPal's shares rose 3.6 per cent in following the company statement late on Sunday (Oct 24). Since then, PayPal's shares have shed 12 per cent of their value, with experts and analysts blaming the poor investor reception for the talks collapsing, while others highlighted challenges around integrating Pinterest within PayPal. "We believe PINS is likely to still be viewed as a potential target given its reasonable valuation compared to other social media peers and sharp share decline the last several months, given an anticipated sharp deceleration in subscriber growth," said Angelo Zino, an analyst at CFRA, in a note on Monday.Īided by a boost in online payments in e-commerce during the Covid-19 pandemic, PayPal's shares had risen over 35 per cent in the past 12 months, giving it a market capitalization of nearly $320 billion, prior to the reports on its talks with Pinterest. Some analysts now think Pinterest could attract interest from other bidders down the road. Pinterest is grappling with the twin challenges of losing its co-founder Evan Sharp and a slowdown in user growth that has hampered its future prospects. "Running a platform primarily focused on driving user engagement and advertising would require PayPal to use muscles it isn’t accustomed to using," said Huang in a research note to clients. Tien-tsin Huang, a payments analyst at JP Morgan, said that a Pinterest deal would bring "significant integration risk" for PayPal, notably in terms of culture and execution. Both companies did not respond to further requests for comment. PayPal did not provide additional details Monday in its one-line statement. Reuters and other media reported on the deal talks on Friday, when sources said that PayPal had offered $70 per share, mostly in stock, for Pinterest. The latest development, which dashed the prospect of Pinterest getting access to PayPal's massive user base, sent the social media platform's share price down over 12 per cent. PayPal Inc said it is not pursuing an acquisition of Pinterest Inc at this time, after several media reported last week that it was in talks to buy the digital pinboard site for as much as $45 billion (S$61 billion). ![]()
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