(Reuters) PayPal Holding Inc. has reportedly offered $45 billion to acquire Pinterest Inc. in a deal set to be the largest acquisition of a social media company.
The payment giant is said to offer $70 a share for the deal, a 26% premium to Pinterest’s $55.28 closing price as of Tuesday. The price is also 62 times the company’s EBITDA.
PayPal reportedly wants to finalize the deal before releasing its quarterly results on November 8.
Pinterest is expected to reward shareholders with some PayPal stocks from the benefits that they will get in cost synergies and increasing revenues.
The deal happened after Pinterest co-founder Evan Sharp last week said that he was resigning from his role as a Chief Creative Officer and joining LoveFrom, a design company.
Analysts project that the opportunity will enable PayPal to benefit from the e-commerce growth and increase its revenue through advertising.
PYPL: NASDAQ is up +0.44% on pre-market, PINS: NYSE is down -1.58% on pre-market.
