Online payment platform PayPal (NASDAQ: PYPL) has denied reports that it intends to purchase social media platform Pinterest in an alleged $45 billion deal.
In a statement, PayPal clarified that it has no interest in pursuing Pinterest at the moment. However, in the brief statement, the company did not rule out the possibility of a future deal.
“In response to market rumors regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time,” PayPal stated.
Similarly, Pinterest has not provided any feedback regarding the alleged deal.
Last week, reports emerged that PayPal intended to expand its brand with the Pinterest acquisition, a deal that would have potentially ushered the payment giant into the social commerce sector.
The reports indicated that PayPal had offered $70 for each share of Pinterest, a 25 percent premium to where the digital pinboard’s stock had been trading before the acquisition news.
Following the news, Pinterest’s stock surged by almost 7%, while PayPal corrected by about 5%.
PayPal expansion plans
After emerging as a critical player in the online payment scene, PayPal has been working towards attaining the ‘Super App’ status with lined-up acquisitions and new features.
Last month, the platform added a high-yield savings account, in-app shopping tools, up to two-day early access to direct deposit funds, bill pay, and deals and rewards for users.
PayPal is also expected to unveil new features, including investment capabilities and purchasing cryptocurrency in the coming months.
Notably, social commerce is a growing scene with other tech giants, including Facebook venturing into the sector. For instance, the social media platform has begun testing a dedicated “Shop” tab on Instagram’s home screen.
Through social commerce, companies can track clicks and purchases within their respective apps to measure the effectiveness of adverts.