The Strategist

PayPal signs record deal in its history

11/22/2019 - 08:13

Payment company PayPal buys Honey online discount service. Last year, Forbes included this startup in the ranking of future unicorns. PayPal will pay for it $ 4 billion, and this is the largest amount in its history.

PayPal payment company buys the online service Honey for $ 4 billion, which helps people save on purchases by comparing prices for goods and services in online stores. Buying Honey will be one of the most transformative acquisitions in PayPal history, according to a message to investors published on the payment system website.

“Honey provides a wide range of services to simplify the shopping process, while at the same time making it more accessible and useful,” said Dan Schulman, President and CEO of PayPal. He stressed that the deal will allow the company to "play a more significant role in the daily lives of our consumers."

After closing the deal, Honey’s headquarters will remain in Los Angeles, California. Service co-founders Jordan Ruan and Ryan Hudson will continue to lead the Honey team.

Startup Honey was created in 2012. In 2018, Forbes entered the list of 25 start-ups, the valuation of which can soon reach $ 1 billion. Today, the monthly audience of active Honey users is approaching 17 million people, and the service works with 30,000 online retailers. A PayPal press release emphasizes that in 2018, Honey helped millions of people receive discounts totaling more than $ 1 billion.

The $ 4 billion purchase of Honey was the largest acquisition in PayPal history. In May 2018, the company bought a Swedish startup iZettle for $ 2.2 billion.


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