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PayPal Offers $45 Billion For Social Photo Sharing Network Pinterest

The announcement of PayPal's bid for Pinterest came just as the social network unveiled new features such as Amazon affiliate links and Creator Rewards.

According to Reuters and Bloomberg, PayPal Holdings Inc. is in talks to buy social media company Pinterest Inc. for $45 billion (each of whom cites anonymous people familiar with the matter).

According to their sources, PayPal is able to finance the deal “mostly with stock” due to the pandemic and the resulting acceleration of eCommerce adoption.

PayPal stock has risen 36% in the last year, giving the original fintech brand a market cap of nearly $320 billion.

Pinterest’s audience has grown to over 400 million monthly active users.

Given that Pinterest’s userbase is more than 60% female and includes 45 percent of people in the United States with an annual household income of $100,000 or more, that audience could be extremely profitable for PayPal.

According to Pinterest, members who visit the site on a weekly basis outspend non-Pinners by 2x per month and have an 85 percent larger basket size.

Pinterest had already been dipping its toes into the eCommerce pond; in fact, the visual social network stated explicitly that it intends to provide online sellers with a storefront.

Pinterest started in its launch announcement of a slew of new features released today,

“Pinterest is deliberately designing a product rooted in inspiration, inclusivity and positivity for Pinners, creators and brands.

These latest features address the changing needs and expectations of creators and consumers online, and they enable everyone to inspire, build and reach new audiences; engage with a community around shared passions; earn money with original content and become a storefront for merchants.”

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Rumors coincide with the introduction of more shoppable idea pins and creator rewards

The potential acquisition became public just as Pinterest announced the launch of:

  • A redesigned home feed with tabs for Browse and Watch.
  • Takes is a new engagement tool for Pinners and creators worldwide, available on iOS and Android.
  • Pinterest’s first in-product monetization program for creators, Creator Rewards.
  • Using AR, Idea Pins can be integrated with augmented reality. Put it on.
  • Creator Originals is a new 100-episode content series featuring 10 different Pinners.
  • Amazon Associates Program product tagging for Pinners in the United States, who can now add Amazon affiliate links and earn commission on qualifying purchases.
  • Pinterest Expands Video Content Visual Search
  • Pinterest stated about its new Idea Pins AR integration,

“…creators now have the option to make their Idea Pins automatically shoppable by enabling shopping recommendations on their Idea Pins. The ‘shop similar’ feature uses Pinterest’s visual search technology to recommend Product Pins that are visually similar to the content within the Pin, giving Pinners the ability to shop what they see.”

And, in terms of Creator Rewards, Pinterest stated,

“The new program is Pinterest’s latest initiative to pay creators for sharing their passions and inspiring meaningful engagement through their content.

Access to Creator Rewards is available in the U.S., through an all-new global Creator Hub, where creators can manage their Pinterest presence with tools, tips and insights.”

Pinterest’s new features are now available on iOS, Android, the web, and desktop.

Even in a record-breaking year for mergers and acquisitions, this is one to keep an eye on.

Editor’s Note: On October 25, PayPal told Reuters in a one-sentence statement that it is not interested in acquiring Pinterest, sending the social platform’s stock down more than 12%.

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