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The Pinterest Inc application is displayed on an Apple Inc. iPhone in this arranged photograph taken in Little Falls, New Jersey, USA, on Saturday, February 23, 2019. (Photo: Bloomberg)

Pinterest jumps on Microsoft’s reported takeover interest

The Pinterest Inc application is displayed on an Apple Inc. iPhone in this arranged photograph taken in Little Falls, New Jersey, USA, on Saturday, February 23, 2019. (Photo: Bloomberg)

Pinterest Inc shares jumped on Thursday after the Financial Times reported that Microsoft had approached the social-media company about a potential takeover in recent months.

Shares rose as much as 7.3 per cent to touch an intraday record, extending a recent advance. The stock has more than doubled over the past six months, and recent gains came on the back of fourth-quarter results that beat expectations.

Microsoft shares rose as much as 1 per cent but last traded up 0.4 per cent. Both companies declined to comment on the report.

Buying Pinterest “could expand Microsoft’s addressable market in advertising and e-commerce,” wrote Mandeep Singh, an analyst at Bloomberg Intelligence. He noted that Pinterest has steadily grown engagement among its user base during the pandemic.