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Pinterest Acquired by Elliot Management, Shares Soar 20%

Navigasi - Pinterest shares jumped more than 20% in extended trading on Thursday after The Wall Street Journal reported that Elliott Management had raised more than a 9% stake in the company.

Pinterest Acquired by Elliot Management, Shares Soar 20%
Pinterest Acquired by Elliot Management, Shares Soar 20%

Elliott, who is known for his activist investments, has been discussing unspecified matters with Pinterest for the past few weeks and told the company it is now the largest shareholder.

Previously, Pinterest shares plunged 75% in the last year as the social media company struggled to retain users.

While its revenue grew 52% in 2021 to over $2.5 billion, its global monthly active user count fell 6% to 431 million.

Pinterest stock (PINS) soared on Wednesday, October 20, 2021 following the news that digital payments company, PayPal, could potentially buy the social networking site.

PayPal is rumored to be acquiring and valuing Pinterest for USD 39 billion or IDR 550.3 trillion (assuming an exchange rate of IDR 14,111 per US dollar). The planned acquisition by PayPal was first reported by Bloomberg sources.

So did Reuters and the Wall Street Journal. Unfortunately, the company did not provide such comments or responses.

Pinterest shares soared almost 12 percent on Wednesday morning, October 20, 2021. Before finally doing the profit sharing.

Pinterest, which is considered a more convenient internet platform, continues to experience some controversy. Earlier this year, the company announced it would ban advertising related to weight loss. This step was taken after the issue of content that promotes eating and lifestyle habits could potentially harm users.

Last year, Pinterest also had to pay USD 22.5 million (equivalent to Rp. 317.5 billion) to settle a gender discrimination lawsuit filed by former Chief Operating Officer Francoise Brougher. Pinterest assumes no responsibility as part of the settlement.

Acquisition by Paypal

PayPal (PYPL) has a track record in corporate acquisitions. Last month, PayPal bought Paidy, a Japanese service company with the tagline buy now, paylater for USD 2.7 billion or around Rp 38.1 trillion.

The company's other purchases are mobile payment platform Venmo and gift shopping site Honey. In recent years, Pinterest has introduced more shopping features.

Therefore, the company entered into a partnership with Shopify. This makes it easier for sellers to use Pinterest to reach potential customers.