PayPal announced that it has no intention of acquiring Pinterest for the time being. Some media previously said that PayPal was preparing to acquire Pinterest for $45 billion. JP Morgan Chase (JPM) analyst Tien-tsin Huang believes that the acquisition of Pinterest will bring great integration risks to PayPal, especially in terms of cultural and execution integration.
Huang Tianjin also said: “The main focus of operating a platform is to increase user engagement and strengthen advertising business. These are not what PayPal is good at. The development of Pinterest faces challenges, such as the departure of co-founder Evan Sharp, and the slowdown in user growth. Some analysts believe that there may be other companies interested in acquiring Pinterest.
CFRA analyst Angelo Zino said in the report: Compared to other social media peers, Pinterest’s valuation is quite reasonable. The stock price has fallen in recent months, and the user growth rate has slowed significantly. So we believe it is still a potential acquisition target.
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PayPal’s stock price has risen 35% in the past 12 months, and its valuation was close to $320 billion before acquisition rumors emerged. After the rumors appeared, PayPal’s stock price fell 12%, because experts and analysts believed that the acquisition negotiations might not be fruitful, and some people thought it was difficult to integrate Pinterest and PayPal.
After the new crown gradually eased, Pinterest’s global growth began to slow down, especially in the United States, and Pinterest’s users are mainly from the United States. Pinterest once predicted that the main driving force for the next growth will come from deep interaction with existing users, rather than newly registered users. In the June quarter, Pinterest’s monthly active users increased by 9% to 454 million, compared with a 30% increase in the previous quarter.