Payment major PayPal Holdings Inc has offered to purchase digital social media firm Pinterest Inc for $45 billion, said people privy to the development, reported India Today.
According to the report, PayPal has offered $70 per share, mostly in stock, for Pinterest.The online payments platform hopes to successfully negotiate and announce a deal by the time it reports quarterly earnings on November 8.
As per Bloomberg News, the possible price of $70 per share would value Pinterest at around $39 billion. The price would represent a 26 per cent premium to Pinterest's closing price of $55.58 on Tuesday.
PayPal and Pinterest did not respond to the media comment. However, sources said the ongoing discussion is private and confidential.
An explosion in digital shopping has paved the way for San Jose, California-based PayPal stock to get more than double since the start of last year. This has helped the payment firm increase the market capitalization to nearly $320 billion, reported The Economic Times.
In March, PayPal had said it will hire 1,000 engineers this year for its India development centres across Bengaluru, Chennai, and Hyderabad.