![]() ![]() So, encouraging PayPal to acquire Pinterest could be a win-win situation for Elliott.Įlliott has not disclosed the size of its position, but based on its history we would expect it to be between 1% and 2%, primarily in swaps and other derivatives, which do not have the same disclosure requirements as common stock. Even more noteworthy, Elliott has an approximately 9% (or $1 billion+) investment in Pinterest. However, he recently lightened his grip on the company by handing over the CEO role, which could be an indication that he is willing to listen to offers. Moreover, one of the reasons why potential suitors have not historically pursued Pinterest is because of the perception that its founder and longtime CEO Ben Silbermann would not sell. Last year, there were rumors that PayPal was interested in making a bid for Pinterest. A more likely scenario is that the firm encourages PayPal to explore strategic alternatives around Venmo or Braintree or acquire other companies that would have synergies with PayPal's core business. ![]() However, at a $99 billion market cap, PayPal is likely too big for them to do that, even with a partner. Elliott has had its best returns buying portfolio companies, fixing them and selling them. However, Elliott is more of a strategic activist than an operational activist and has had its best activist successes through encouraging M&A at its portfolio companies. While that is primarily due to a sell-off in growth stocks, there is an opportunity here to improve margins as the company's sales, marketing, research and development expense levels are higher compared to those of its peers - even double the levels at some of those companies. PayPal is down more than 70% from closing as high as $308.53 just over a year ago. Personal Loans for 670 Credit Score or LowerĮlliott has been making big investments in technology growth companies that have been decimated by the markets in the past year, and this is no exception. Personal Loans for 580 Credit Score or Lower The auction is actually for the large sign that had hung in the lobby of the PayPal offices in San Jose.Best Debt Consolidation Loans for Bad Credit PayPal has redesigned its logo and is auctioning off its old logo for charity. Therefore corporate identity change is a tricky business, especially for online money transfer sites like paypal. People can get the perception that the company is not reliable. So when the company changes their identity often (especially if the new logo looks worse than the previous one) it might send a wrong message to its customers. People also want to see a stable company. ![]() Therefore they want to make sure that, their money is in secure hands. I personally believe companies like PayPal who deal with online money transfer should not change their identity often, especially the logo.īecause when it comes to online money handling, people are very serious and cautious about their money, if not scared. It can also lead to many exploitations by scammers. PayPal’s new logo is not that different than from its old one, but it’s still a change that might confuse many users. ![]()
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