and posted in Technology

PayPal Holdings is exploring the possibility of acquiring social media company Pinterest,
The people, who requested anonymity to keep the conversations confidential, said PayPal, based in San Jose, California, recently contacted Pinterest about a potential deal, and the people said the two companies had discussed a potential price of about $70 per share.

That would value Pinterest’s publicly traded Class A shares at about $39 billion, implying a valuation of up to $45 billion for the entire company when the unquoted Class F shares are taken into account.

The deal at that level offers a premium of about 26% over Pinterest’s closing price on Tuesday of $55.58.

Shares of “Pinterest” rose in New York trading on Wednesday, which led to the temporary suspension of trading after it jumped by 19%, and reached $ 66 per share, while “Paypal” shares fell by 3.3% at 11:47 am in New York, giving the company a market value of about $309 billion.