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.