Saturday, August 6, 2022

PayPal & Pinterest Merger? Again?

PayPal and Pinterest
What an eventful month! Besides the busy earnings news, we also have some interesting news on the M&A front. This time, it is the potential merger of PayPal (NASDAQ: PYPL) and Pinterest (NASDAQ: PINS). The news came up after one of the world's largest activist fund managers, Elliott Investment Management has disclosed its significant stakes in both companies recently.

This is understandable as the investment firm is a well-known activist fund and these two acquisitions came about in a rather unprecedented time too. Apparently, the market loves it when the news is announced; both stocks have shown pretty decent rise in their share prices. See below.

PayPal vs Pinterest Share Price

However, this is not the first time PayPal is rumored to be keen in acquiring Pinterest. Could this be the last draw required to bring these two firms together? (tweet it) So far, the signs are not pointing towards this direction. E.g. PayPal is working on its efficiency opportunities and Pinterest has a new CEO to drive the next stage of growth for the firm. 

Hence, it is still unclear if the merger is the ultimate aim of Elliott. Personally, I hope that the two firms can stay independent and continue to work on their own growth agendas. I just can't see their synergy and how the merger can help them. But who am I to say? Nevertheless, I will watch the situation closely and hold onto my shares for now. Thanks for reading and please follow my blog if you enjoy this article.

Disclosure: I own shares in PayPal and Pinterest as of this writing.

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