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Elliott Invests $1 Billion in Pinterest to Fund Accelerated Buyback

The investment backs a larger buyback plan, reflecting a bet on Pinterest’s AI-driven growth.

Overview

  • Pinterest will deploy Elliott’s $1 billion into an immediate $1 billion accelerated share repurchase within a newly authorized $3.5 billion program.
  • The company targets roughly $2 billion in total repurchases in the first half of 2026, combining the ASR, up to $500 million in 10b5-1 open‑market buys, and $473 million already completed.
  • Shares rose sharply after the announcement, with gains reported around 6% to 9% in premarket and intraday trading.
  • Elliott has invested in Pinterest since 2022, holds a board seat, previously owned about 4.8% as of December, and is on track to become the largest shareholder.
  • Pinterest cites record 2025 revenue and AI‑powered user growth, while acknowledging recent pressures from a weak fourth quarter, retailer ad pullbacks tied to tariffs, and workforce reductions near 15%, with ASR pricing and timing not disclosed.