what happened
Shares of Pinterest (NYSE: PINS) climbed 7.3% on Thursday on reports he had talks with Microsoft (NASDAQ: MSFT) regarding a potential acquisition.
Approximately
Microsoft has approached Pinterest according to a possible agreement The Financial Times, although the talks are reportedly no longer active. Pinterest’s share price has risen 32% so far in 2021 and 258% in the past year, which has probably made it difficult for the two companies to agree on a price. Critics have paid Microsoft too much for acquisitions ahead of time, and the technology giant does not want to repeat the mistakes.
Microsoft has reportedly been tempted by Pinterest’s rising user growth. Image Source: Getty Images.
In addition, the agreement will no doubt be experienced by the regulatory inquiry. Many government officials have expressed concern about the growing power of big technology companies, especially as it relates to their ability to divert public opinion via social media.
Now what
It’s easy to see why Microsoft would be interested in Pinterest. The popular image sharing site added more than 100 million active users by 2020. People flocked to his platform during the coronavirus pandemic to find inspiration in images related to their passions. Pinterest’s revenue, in turn, rose 48% year-on-year to $ 1.7 billion.
Microsoft, meanwhile, is looking for fast-expanding social media sites that can help grow its Azure cloud computing service. Pinterest currently uses Amazon Web Services for its cloud infrastructure needs.