In the past few years, California-based PayPal Holdings Inc. has been acquiring smaller companies to strengthen their hold in the financial services business. Their set acquisition of Paidy Inc., a Japanese startup, in September for $2.6 billion aims to extend the company’s offerings of “buy now, pay later” to their worldwide clients.
Online payments giant PayPal now plans on purchasing social media site Pinterest. The offer stands at $70 per share, which amounts to the potential price of $45 billion. Should the negotiations be successful, this would be recorded as the company’s biggest acquisition to date.
This exciting development is set to benefit both consumers and business owners on said platforms.
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Why PayPal Is Considering a Mega-Deal for Pinterest?
Pinterest has seen an upward boost in numbers of monthly active users (MAU) in the past years. Especially during the COVID-19 pandemic lockdowns around the world, more and more people have been drawn to this social media site.
Businesses, both established and startups, have been flocking to the platform to advertise and sell their products. Brands engagement and conversion on Pinterest have been a soaring success.
Due to this upward trend, financial technology company PayPal is now eyeing to purchase online image-sharing platform Pinterest Inc. This expansion is set to extend PayPal’s reach into the advertising scene online.
What Are the Potential Advantages and Disadvantages of PayPal and Pinterest’s Merger?
Everyone would be excited about this union with heaps of benefits for all. However, it is not certain if the deal will push through. Certain aspects might not work out still.
When PayPal purchases Pinterest, a lot could happen. Here are some points that weigh in on this joining of companies. Let’s take a look at what arguments can go for or against this merger.
- Integrating PayPal into Pinterest will make purchases on the site a breeze. This is sure to entice shoppers who would love the convenience this offers them.
- A lot of users on Pinterest go there to shop. More purchases made via PayPal mean more profits for the company.
- More and more businesses are setting up shops on Pinterest and paying a lot of money for advertisements. Trying their hand in the e-commerce scene will allow PayPal to increase their income via advertising revenue.
- Pinterest’s user count has been a bit on the decline since the post-pandemic easing of restrictions. People are spending less time on social media sites compared to when everyone was holed up at home.
- Pinterest is currently going through some internal instability. One is regarding Evan Sharp, the creative officer of Pinterest, his stepping down means a big change in the company. Whether for the better or worse, we have yet to see.
- Another issue is the accusations that Pinterest is discriminatory towards female employees. People are not going to take that lightly.
Pinterest’s Statistics that Matter to Marketers in 2021
1. Pinterest has 454 million active users every month.
By the end of the second quarter of this year, Pinterest has recorded a total of 454 million active users around the globe. Of this number, 91 million users are from the United States, according to statistics.
2. It ranks as the 14th most popular social networking site.
As of July 2021, Pinterest has over 478 million active users. It sits below top-ranking sites like Facebook and YouTube, which have over 2 billion users per month.
3. In Q4 2020, Pinterest revenue grew 76% year over year.
In light of the global pandemic, people have been driven to conduct their lives online. Pinterest had played a significant part in this lifestyle change. The platform has become important in connecting people and businesses big and small.
The user growth and increase in traffic have resulted in a $706 million revenue for the last quarter of 2020. The company has a total revenue of $1.69 billion for the entire year 2020. This is a 48% increase from the previous year’s total revenue.
4. Pinterest is ranked the best platform for selling online.
When it comes to advertising and selling, 92% of marketers who do business on the platform consider it the best. The site’s useful features have made their experience easy and enjoyable while getting the most sales and conversions for their brand.
Merging companies that both function online is quite beneficial. Users of the respective brands will now also merge to enjoy the seamless experience of online shopping and purchasing in one super app.
If you are planning to put up a business, now is the perfect time to start. Should the merger of the two big companies push through successfully, brands that have a presence on Pinterest will most likely see an increase in customers in the future. Pinterest growth is almost assured for all.