- Microsoft (NASDAQ: MSFT) approached Pinterest (NYSE: PINS) about a potential acquisition in recent months, the FT reported.
- According to FT, the talks are not currently active and did not specify a possible transaction price.
- Pinterest has indicated in the past that it wants to remain an independent entity. Last year Microsoft tried to buy Tiktok, but the deal did not materialize.
According to FT, Microsoft approached Pinterest about a potential deal to acquire the $51bn social media company popular for finding ideas like food recipes, home decorations and style inspiration, and more. With billions of Pins on Pinterest, Pins can be saved to boards to keep your ideas organized and easy to find.
Coronavirus lockdown increased engagement on social media platforms including Pinterest, with its monthly active users, jumping 37% to 459 million in the fourth quarter. Pinterest market value has increased by more than 600 per cent during the coronavirus pandemic.
Last year Microsoft tried to buy the US operations of TikTok, but the bid for TikTok failed. There is a specific pattern on Microsft Acquisitions in the past. Microsoft is acquiring products and companies with a more extensive user base. For example, apart from buying professional networking site, LinkedIn for $26bn in 2016, company has acquired GitHub, a code repository that doubles as a network for software developers, and Minecraft, an online game that last year passed 131m users.
Interestingly Pinterest users had grown to 459m, relies on Amazon Web Services “AWS” as its infrastructure provider.
Microsoft’s Pinterest purchase would have been the largest deal for the tech giant. Microsoft shares closed nearly 0.4% lower at $242.82 on Wednesday. On the same day, Pinterest shares closed 2.15% higher at $81.12 and fell 0.15% in the after-hours session.
Considering this Microsft News story, it appears that Microsft is trying hard to acquire something big in the social media space; however, there is no success yet.
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