The company's stock was halted twice, before gaining more than 10% as of late morning. PayPal, meanwhile, dipped more than 3% on the news.  PayPa

Pinterest shares soar following report PayPal may buy it

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2021-10-20 16:00:09

The company's stock was halted twice, before gaining more than 10% as of late morning. PayPal, meanwhile, dipped more than 3% on the news.

PayPal has discussed acquiring the company for a potential price of around $70 apiece, which would value Pinterest at about $39 billion, according to Bloomberg. Pinterest stock closed at $55.58 per share on Tuesday.

PayPal has largely benefitted from the boom in online shopping since the start of the pandemic. A potential acquisition of Pinterest could push the company into social commerce, a growing space that other tech giants are already working on.

Facebook, for example, has heavily pushed into making Instagram shoppable. Last summer, it began testing a dedicated "Shop" tab on its home screen. It also lets users shop through regular Instagram posts, Live, Stories and its Explore feed, and has tested shopping on its short-form video feature Reels.

Social commerce lets companies track clicks and purchases within their respective apps, so they can prove the effectiveness of ads to advertisers. It also could allow the companies to receive a cut of each transaction.

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