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Pinterest's stock soars on reports that PayPal may acquire it


Following reports that digital payments company PayPal is considering acquiring the bookmarking website Pinterest, the stock of Pinterest soared on Wednesday.


In an initial report, Bloomberg cited people familiar with the matter as saying PayPal is considering acquiring Pinterest for approximately $39 billion. PayPal's interest was also reported by Reuters and the Wall Street Journal, both of which cited anonymous sources as sources. CNN Business reached out to the companies for comment, but did not receive a response right away.


PINS shares surged nearly 12 percent in the late morning hours of Wednesday, before paring some of those gains later in the day.


Pinterest, which is often referred to as a "more feel-good corner of the internet," has not been without its share of debate. In response to concerns about content on its platform that promoted potentially harmful eating and lifestyle habits, the company announced earlier this year that it would prohibit weight-loss advertisements.


Additionally, Pinterest paid $22.5 million to settle a lawsuit brought against the company by its former chief operating officer Francoise Brougher, who claimed that she had been subjected to gender discrimination. The settlement did not include an admission of liability by Pinterest, which was part of the agreement.


A track record of large-scale acquisitions, PayPal (PYPL) recently acquired Japanese buy-now-pay later service Paidy for $2.7 billion, adding to its growing list of recent acquisitions. Venmo, a mobile payments platform, and Honey, a shopping rewards site, are just a few of the companies that have been acquired by the company in the past.


Recent years have seen Pinterest expand its shopping capabilities, and the company has partnered with Shopify to make it easier for merchants to use the social media platform to reach new customers.

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