PayPal Holdings Inc has put forward a deal to acquire pinboard site Pinterest Inc for $45 billion, according to a report by Reuters on Thursday.

  • It would become the biggest acquisition of a social media firm, beating Microsoft Corp’s $26.2 billion purchase of LinkedIn in 2016.
  • The discussion came as internet shoppers increasingly purchased items they saw on social media, following “influencers” on platforms such as Instagram and TikTok.
  • Buying Pinterest would allow PayPal to gain more of that e-commerce growth and diversify its income through advertising revenue.
  • PayPal has made an offer of $70 per share, mostly in stock, for Pinterest. The online payments giant hopes to successfully agree on a deal by the time of publishing its quarterly earnings on Nov. 8.

PayPal Shares plunged 4.9% to close at $258.36, while Pinterest shares soared nearly 12.8% to $62.68. PYPL up +0.60%, PINS down -1.12%, Pre-market trading