PayPal Holdings Inc (PYPL.O) has made an offer to buy digital pinboard site Pinterest Inc (PINS.N) for $45 billion, a combination that may herald additional financial technology and social media tie-ups in e-commerce.
It would be the largest social media acquisition ever, surpassing Microsoft Corp’s (MSFT.O) $26.2 billion purchase of LinkedIn in 2016.
The deal talks come as online consumers increasingly buy products they see on social media, frequently by following “influencers” on platforms like Instagram and TikTok. By acquiring Pinterest, PayPal would be able to take a larger share of the e-commerce boom and diversify its revenues through advertising revenue.
PayPal has offered $70 per share, primarily in stock, for Pinterest. According to the source, the online payments provider hopes to successfully negotiate and announce a deal by the time it announces quarterly profits on Nov. 8.