PayPal (PYPL.US) has proposed to acquire Pinterest Inc (PINS.US) for US$45 billion, down more than 5%, and its share price hit a new low since May 20 this year.
According to the news, Pinterest shareholders will receive 70 USD per share in this transaction, mainly are PayPal shares. Because of concerns that the transaction will dilute the equity of existing shareholders, Paypal's share price has fallen more than 5% for two days.
Paypal is an online payment platform that owns venmo and is involved in the field of cryptocurrency. Pinterest is a leader in the design and creative sharing community. Both are popular stocks on social media.
The two companies seem to be difficult to associate together, but in fact, Pinterest has also tried to get involved in e-commerce services that integrate social in the past few years. If this transaction can be achieved, PayPal will be expected to use Pinterest to enter the field.
Guggenheim Securities analysts said that this transaction may be a more active integration exploration than expected.
We can predict that once the acquisition is completed, the merger of PayPal and Pinterest can create the world's first fully integrated e-commerce social media platform.
However, Not everyone on the Street is sold on the potential combination, which would take PayPal into the budding land of social commerce.
Others believe that this transaction shows that PayPal is worried about slowing down of its growth because the $70 offer is a bit low. CFRA analyst Angelo Zino explained, “In terms of PayPal, we think the company may be focusing on a proposed transaction to promote further integration of e-commerce and social media to provide additional avenues for transaction growth.”
However, it is still unknown that PayPal will eventually acquire Pinterest.
- Do you think this transaction can be successfully implemented?
- Can the combination of the two bring out the emergence of new giants?
Please share your opinion below😄😄😄
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