Elliott Management Back At It with $PINS and $PYPL
Recently Elliott has once again resumed its shareholder activism this time with two very interesting companies.

$PINS a business I have wanted to see get acquired for some time has had a rather large stake bought by Elliott.

This comes not too long after long time Founder/CEO announced he was stepping down and former Google employee Ben Ready would be taking his place in hopes of driving e-commerce growth.

While I am sure Elliott has the expertise to help Pinterest form an effective plan I think the activist investor has a different plan.

Elliott also disclosed a stake in $PYPL yesterday. While the official story is Elliott wanting to help cut costs I think, again, there is a different story here.

Back in October Paypal said they were in talks to acquire the platform. These talks fizzled out quite quickly and no deal was reached.

I definitely don't think Elliott would take rather large positions in these two companies in particular without some sort of ulterior plan.

Of course, I could be, and probably am, crazy and Elliott really does just want to help both of these stellar companies get even stronger, even if it is separately.

Still interesting its these two companies at the same time.
Nikki Dunn, CFP®'s avatar
Oh boy ... I did not put this together... very very interesting!
Rihard Jarc's avatar
Yeah the timing is very convenient. I also see a push happening from Elliott for $PYPL to buy $PINS. A 9% stake in $PINS seems very big without a proper plan so I have no doubt that they have a plan in place already.
Dollars and Sense's avatar
@rihardjarc yeah no matter what happens it seems like a good deal all around
Rihard Jarc's avatar
@dollarsandsense What is the price in your view a deal could get done?
Joshua Simka's avatar
@rihardjarc @dollarsandsense $PINS has been pretty beaten down. I wonder if they'd pay a 40-50% premium on the market. Call it $28/share? Over or under?
Rihard Jarc's avatar
@tomato I was thinking the $30 range is where something would be getting done, but it's pure speculation.
Joshua Simka's avatar
Great job on this cunning take, @dollarsandsense! I'm a $PINS shareholder and it would be interesting to see if the $PYPL acquisition came to pass.
Dollars and Sense's avatar
@tomato im a $PYPL shareholder and I would love to see this acquisition!
Dissecting the Markets's avatar
Wow! Great job on finding that trend. I think that Elliott will make PayPal acquire Pinterest and then make PayPal a major player in the social commerce space. Who needs $EBAY when $PINS can become $PYPL's eBay?
Dollars and Sense's avatar
@dissectmarkets that would be insane. Also wouldn't it be funny if PayPal acquired Ebay, what a wild turn of events.
Reasonable Yield's avatar
These guys are building a 2020 portfolio haha.
Dollars and Sense's avatar
@reasonableyield "covid beneficiaries"