Elliott Management Invests $1 Billion in Pinterest, Shares Surge 8%

Pinterest Inc. Receives $1 Billion Investment from Elliott Investment Management

Key Highlights

• Elliott Investment Management is investing $1 billion in Pinterest Inc., supporting the company's share buyback efforts.
• Pinterest's shares surged 7.6% on Tuesday, following the announcement.
• Pinterest has over 600 million monthly active users worldwide.

New Share Buyback Programme

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• Pinterest has approved a new $3.5 billion share buyback programme, with $500 million set aside for additional share repurchases using cash on hand.
• The latest share buybacks will be carried out as part of the new programme.

Elliott Investment Management's Confidence

• Elliott Investment Management, which first took a stake in Pinterest in 2022, expressed confidence in the company.
• Marc Steinberg, Partner at Elliott Investment Management, stated that the company has been a steadfast supporter of Pinterest since its initial investment.

Investment Terms

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• Elliott Investment Management will purchase $1 billion in Pinterest's convertible senior notes, with an initial conversion price of $22.72 apiece, representing a 30% premium to the closing price on Monday.
• The notes mature on 1 March 2031 and will bear interest at 1.75% annually.

Pinterest Stock Performance

• Pinterest's shares have been under pressure in recent months, recording the steepest monthly decline in over three years last month.
• The company reported a 14% rise in revenue to $1.32 billion in Q4, but missed analysts' estimates.
• Pinterest expects growth to decelerate further in the current first quarter, projecting revenue between $951 million and $971 million.