As of October 2020, Etsy is worth $16 billion.
Pinterest is worth $26 billion.
If they merged they might be able to create a company that’s worth over $50 billion because of potential synergies.
On Etsy, vendors sell homemade knick knacks, printables, etc.
On Pinterest, house moms can graphically search for recipes, shop and buy stuff, and workouts, inspirational quotes.
Graphic designers can create inspiration boards or idea boards from the different inspirations, quotes, pictures, materials, etc. that float around Pinterest.
Separate, they’re easier takeover prey for the likes of Amazon, Google, Microsoft who could roll these little individual businesses into the bigger company’s sales and distribution channels and data systems to create synergies.
Which in and of itself might not be a bad thing, I’m all for synergies because waste is a sin.
Efficiency is next to godliness.
It would also depend on what Etsy and Pinterest had planned.
If the founders wanted to sell their companies to bigger companies from the beginning, cool.
If they wanted to change the world and stay independent, they might need to band together to be able to fend off bigger predators or barbarians at the gate.
If they do band together, they can create cross synergies in some departments, sales channels and opportunities, negotiations with vendors for cheaper server space perhaps, cut some redundant operations, etc.
They’re both creative tech companies with online commerce, search data, cookies, graphics searches, so in theory the merger would work out to create an online store, sales, searchables, printables powerhouse.
And because as of May 2020 Amazon only has $50 billion in its cash hoard, it would have to deplete a considerable amount, or use its stock to make the deal happen.