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Pinterest Stock Tumbles As PayPal Says It's 'Not Pursuing' Takeover of Social Media Group

PayPal, which was linked to a $45 billion takeover of Pinterest last week, said Sunday it is "not pursing" an acquisition of the the social media company.

Pinterest  (PINS) - Get Pinterest, Inc. Class A Report shares fell sharply lower in pre-market trading Monday after PayPal  (PYPL) - Get PayPal Holdings Inc Report, which was linked to a $45 billion takeover of the social media company last week, said it is not pursing an acquisition of the group.

Bloomberg News reported last week that PayPal was close to making an approach for the group at $70 per share., which value the image-sharing social-media platform at close to $40 billion, with subsequent reports from other outlets putting the price tag closer to $45 billion. 

PayPal has been active in the payments sector of late, inking a $2.7 billion deal for Japan-based 'buy now, pay later' firm Paidy last month and unveiling plans to allow customers the ability to buy goods and services with cryptocurrencies at more than 29 million merchants around the world in what may be the biggest single effort to normalize digital purchases.

"In response to market rumors regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time," the payments group said in a brief statement posted Sunday on its website. 

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Pinterest shares were marked 11.85% lower in early trading to change hands at $51.20 each, a move that would extend the stock's year-to-date decline to around 23%. PayPal shares, meanwhile, were marked 3.5% higher at $248.75 each.

Pinterest will publish its third quarter earnings on Wednesday with analysts looking for a non-GAAP bottom line of 23 cents per share on revenues of $631.24 million.