Microsoft Attempted to Acquire Pinterest, FT Reports

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Microsoft is reportedly trying to acquire Pinterest in $51 billion, considered to be one of the biggest tech firm’s deals.

According to the sources, Microsoft tried to break the online pinboard platform in recent weeks, told to Financial Times by the people who had a sneak-peak about the case on Wednesday.

There are no active negotiations according to the people. According to the Microsoft acquisition strategy, their main focus is on collecting a range of active online communities. They want such communities that they can run on their cloud computing platform, Azure.

The deal would have been one of the biggest Microsoft acquisitions to date. It is confirmed that the tech giant continues to pursue an acquisition strategy that is aimed at amassing a portfolio of acquiring active online communities that could run on the Azure Cloud Computing platform. Pinterest, which is a visual discovery engine for finding various ideas to spark your imagination. It boasts more than 300 million active users which currently rely on Amazon Web Services(AWS) according to its infrastructure provider.

According to the FT reports, the talks between the two companies are not currently active, Pinterest still signals its preference to remain an independent company. According to the surveys, the market value of Pinterest has increased by more than 500% during the pandemic itself. It even revealed that the company has 100 million new users in 2020. The growth was 76% in year-over-year quarterly revenue.   

A $51 billion deal would have been Microsoft’s largest acquisition to date after the $26 billion purchase of LinkedIn in 2016. Microsoft even had eyes on a prominent social media company last year when it tried to buy the U.S. operations of TikTok, one of the most popular Chinese video application which is under scrutiny from the U.S. government due to privacy concerns and the ties it has with the Chinese state.

The company made a bid for TikTok which failed after Oracle and Walmart secured a deal to buy U.S. operations. According to the reviews of Joe Biden, Oracle and Walmart’s plan to buy the video app has been pushed back indefinitely, and the previous administration’s efforts to address potential security risks that were posed by Chinese tech companies.

Microsoft has made various acquisitions in recent years. The latest acquisition was a $26 billion takeover of the professional social networking site, LinkedIn. They have acquired some significant companies under their CEO Satya Nadella. A Few years back, a $7.5 billion deal was made in acquiring GitHub by Microsoft. They are in their last stages of finalizing the Bethesda acquisition.

Microsoft and Pinterest, both didn’t immediately respond to the request of Insider for comment. Pinterest, the social media site where people usually pin images and seek inspiration in various fields, was founded in 2009. It has boomed during the pandemic as the users have spent maximum time online. If we see the statistics of the past year, Pinterest has gained more than 100 million monthly active users and presently has 450 million users around the world.

Microsoft has a potential interest in Pinterest which could signal an emerging strategy for its continued cloud push. The windows maker has been convincing more big online service so that it can use its Azure cloud offerings. Amazon’s AWS is a dominant part of the market. Big names like that of Pinterest could draw in certain additional Azure customers.

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Vishakha Puniyani
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