Pinterest Should Say "Yes" if PayPal Is on Bended Knee
Heads were spinning on Wednesday as reports surfaced of PayPal Holdings (NASDAQ: PYPL) negotiating a buyout of Pinterest (NYSE: PINS). The deal would reportedly be worth roughly $45 billion, with Pinterest shareholders receiving $70 a share in mostly PayPal stock.
PayPal stock tumbled 5% on Wednesday following the report, so we know how those investors are feeling about the proposed combination. Pinterest naturally moved higher, but even that camp seemed to be disappointed with the news. They feel that $70 a share in PayPal stock -- or less than $67 after Wednesday's slide -- isn't enough.
As a shareholder in Pinterest -- and not PayPal -- I'm torn. I wouldn't mind a higher offer, but I can't imagine why PayPal or anyone else would offer a better deal at this point. With a critical metric working against Pinterest's business model right now, it's a bad time to overpay for Pinterest. It's not a bad time for Pinterest to cash out. Try on the engagement ring, Pinterest. You may like the way it fits. Do I have my reasons for wanting to marry Pinterest off? I do.
Source Fool.com
