PayPal Holdings Inc. is an international multinational financial technology company functioning and operating online payment systems by supporting money transfers through the internet to all the major countries in the world.
Their online payment services provide a platform as an alternative for the traditional means of exchange of money and prevent the usage of paper by saving it. With a mission for every individual to have convenient and secured products so that they can control their financial resources as per their interests.
The company is always looking forward to the expansion and is the owner of many companies. The company has taken over Venmo, Braintree, eBay, Xoom corporation, Izettle, Paydiant, Honey venom, TIO Networks Corp., and many more.
Recently, PayPal Holdings Inc. is in talks to purchase and take over the image sharing and social media designing company, Pinterest Inc.
Social media is designed in such a way that the posts are only shared in the form of pinboards. Usually, the images shared on the network are small pictures videos, or animated GIFs. The social media network is so popular that it has over 500 million active users from all across the globe.
It is one of the most popular platforms in the medium to look forward to buying people who are looking for new artistic images and ideas of the same along with DIY crafts and project ideas. Social media operates through both website and their application and comprises posts from almost all genres available. From artists posting their paintings to fashion designers posting their designs on this social media network has backed everyone.
Currently, the share prices of PayPal and Pinterest stand at $258 and $62.6 respectively. Reportedly, both the companies have agreed upon $70 per stock as offered by PayPal. The takeover is said to take place for $45 billion. This could lead Pinterest to a worth of around $39 billion US dollars. The news related to the business deal has invaded the market ever since the co-founder of Pinterest, Mr. Evan Sharp officially announced to leave the company to join LoveFrom.
PayPal was the clear winner in the race of business in between the pandemic since the people all across the globe gave up traditional means of payments and were at their level best of trying to look forward to online payments. Being set on a global platform, PayPal leads the markets and makes business transactions a lot simpler and efficient.
They received the prize for providing one of the best online financial services was received by the company and the founder, Elon Musk in the form of a huge jump in the capital of the company. In the past year, the company has seen an enormous jump in its stock prices. The share prices were driven up by 36% giving a rise to its market capitalization of $320 billion.
By capturing Pinterest, PayPal will enter the social media platform, which is one of the most popular and trending websites as of now. PayPal can further diversify its business and generate higher revenues through e-commerce and social networks. Increased incomes and high revenues are generated through social media platforms and networks through advertising of various brands and companies.
These brands and companies who are looking for advertisements for their businesses look forward to one of the most popular pages on Instagram that are operated by various companies, celebrities, or even common people who are termed as influencers on these digital media networks.
The sources claim that the terms and conditions of the deal can be amended and nothing is rigid as rules for the takeover to take place. As of now the terms of the deals have been kept confidential and are not disclosed in the media, but The company is set to announce a deal when they announce their quarterly earnings which are set to take place on November 8, 2021.
The deal can bring a boom to both businesses since the mergers between social media networks and financial technology companies have become a trending business idea among a lot of budding entrepreneurs and businessmen. The potential of the businesses is brought about by the fact that these businesses provide a financial service through social media for the customers to buy a product directly through digital media applications.