(Bloomberg) PayPal stock rose as much as 6% in premarket trading on Monday after it said it is no longer pursuing a deal to acquire Pinterest for $45 billion.
PayPal had proposed an offer price of $70 a share, which was about 26% premium to Pinterest’s Tuesday closing price last week.
The abandoned deal happens amid analysts’ concerns that it lacked a strategic rationale saying it was an act of near desperation by the payment giant.
At $45 billion, PayPal’s deal on Pinterest would have been the largest acquisition of a social media firm. The deal was expected to help in PayPal’s ambition to become a leading global super app.
PYPL: NASDAQ is up +5.82% on premarket, PINS: NYSE is down -9.58% on premarket.
