Mar. 3 at 12:26 PM
$PINS Pinterest announces
$1B investment from Elliot,
$3.5B share repurchase program
Pinterest announced that affiliates of Elliott Investment Management, are investing
$1B in Pinterest. Pinterest expects to use the proceeds from Elliott's investment to repurchase shares of its Class A common stock via a
$1B accelerated share repurchase agreement. The ASR and future share repurchases will be conducted under a new
$3.5B share repurchase program authorized by Pinterest's board of directors, effective immediately. In addition to the ASR, Pinterest intends to repurchase up to an additional
$500M in shares from cash on hand pursuant to a 10b5-1 trading plan, subject to terms and conditions of the plan, market conditions and management discretion.
In total, the
$1B ASR, the intended
$500M of additional repurchases under the Rule 10b5-1 trading plan, and the
$473M of repurchases completed year-to-date represent approximately
$2B of aggregate share repurchases expected in the first half of 2026. Under the terms of the investment, Elliott will purchase
$1B in aggregate principal amount of Pinterest's convertible senior notes. The notes will have an initial conversion price of approximately
$22.72 per share of Pinterest's Class A common stock, subject to customary anti-dilution and other adjustments. The initial conversion price represents a 30% premium to the closing price of the company's Class A common stock on March 2. The notes will mature on March 1, 2031, unless earlier repurchased, redeemed or converted. The Notes will bear interest at 1.75% per year.
