PINTEREST DEAL SET TO TOP CHARTS IN TECH’S $1 TRILLION M&A YEAR

Paypal’s potential takeover of social media firm Pinterest would top the charts in what’s already a record-breaking year for tech deals and push industry M&A volumes past the $1 trillion mark for the first time.

What happened

The online payments provider is discussing a roughly $45 billion acquisition of Pinterest, Bloomberg News reported Wednesday. That would rank as the biggest takeover in the tech industry this year, surpassing Square’s proposed $29 billion purchase of“buy now, pay later” company Afterpay and Microsoft’s $20 billion deal for speech-recognition pioneer Nuance Communications Inc.

Tech companies have announced $971 billion of mergers and acquisitions this year, double the tally for the same period in 2020, according to data compiled by Bloomberg. It’s already the busiest year on record by far, thanks to a series of ambitious deals like Intuit’s $12 billion purchase of email marketing firm Mailchimp and cybersecurity company Nortonlifelock’s up to $8.6 billion takeover of rival Avast.

Why it matters

A string of tech executives have been cooking up their biggest acquisitions in recent months, emboldened by soaring stock valuations and easy credit conditions. Still, their enthusiasm could run into trouble amid increasingly assertive regulators in the U.S.

The U.S. Federal Trade Commission’s new chair Lina Khan has vowed to restore the agency’s power to take on dominant companies thwarting competition. She’s specifically called out the tech industry, where she’s scrutinizing privacy practices and clamping down on deals falling below the radar. Khan’s aggressive stance has spooked some in the market.