Pinterest (NYSE:PINS)
Pinterest stock retraced some of its earlier gains and moved 0.4% down following the publication of a report indicating that activist Elliott may be considering the possibility of selling the firm.
According to a story on Barrons.com that quoted persons familiar with the hedge fund, Elliott, which owns a 9% position in the Pinterest stock, is reported to want to see Pinterest (NYSE:PINS) better monetize its user base or put itself up for sale. The article cited sources who were acquainted with Elliott.
The news comes after the Pinterest stock jumped by 16% on July 15, after the Wall Street Journal (WSJ) news that Elliott had purchased a 9% position in the social media business. At the beginning of this month, Elliott announced that it was the largest shareholder in Pinterest (NYSE:PINS), and it also expressed support for the decision to replace co-founder Ben Silbermann with former Google employee Bill Ready as CEO.
The Elliott investment was made after it was reported in October by Bloomberg that PayPal (PYPL) had made overtures toward Pinterest (NYSE:PINS) regarding a possible acquisition. After further consideration, Paypal stated that it would not pursue a Pinterest stock arrangement.
Early in the month of August, Elliott said that it had also acquired a position in PayPal (PYPL) and that it was collaborating with the payments company to investigate various opportunities for the return of money.
According to a story published by Barrons, which quoted individuals with deep ties to both firms, a potential transaction involving PayPal (PYPL) and the Pinterest stock has been ruled out.
The claim from Bloomberg occurred after the Financial Times (FT) in February 2021 reported that Microsoft (MSFT) had approached Pinterest about a possible purchase, even though Pinterest stock stated it wished to remain independent at the moment.
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Activist Elliott’s disclosure of a possible sale of Pinterest causes the Pinterest stock to quickly lose ground.
Featured Image – Megapixl © Koolander
Author Shariq Khan 
