This transaction will transform the shopping experience for PayPal's consumers while increasing sales and customer engagement for its merchants. Acquired Entities. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", expect", "project, "forecast", or "intend", and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and any other similar expressions. Founded in 2012, Honey is best known as a popular discovery tool that helps consumers find savings as they shop online. (excluding tax or any additional fees, such as shipping), in order to determine the amount of Gold points you may earn for that order. Many payment companies are looking to move beyond the checkout by providing value-added services to consumers and merchants in order to avoid a race to the bottom.. Please contact the moderators of this subreddit if you have any questions or concerns. SAN JOSE, Calif., Jan. 6, 2020 / PRNewswire / -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has completed its acquisition of Honey Science Corporation for approximately $4 billion in cash. . From notifying you when a price drops, to showing you the lowest prices available, Honey provides you with the information that you need to make the best decisions with your money. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made, and, accordingly, readers should not place undue reliance on forward-looking statements and information. Tom (@ttaulli) is the author of the book,Artificial Intelligence Basics: A Non-Technical Introduction. Great for questions about PayPal, transactions and problems! On the conference call, management noted that Honey's users were "predominantly" U.S. based, 70% were millennials, and 79% were females. Honey earns its commission from stores when customers use its platform to make a purchase. What started as a browser extension has grown into a suite of free tools that help everyone shop with confidence. Following the acquisition, Honey will retain its headquarters and brand in Los Angeles, California. Josh Criscoe This week PayPal announced that it paid $4 billion for Honey Science, a startup that was launched in 2012. Keep in mind that Honey has about 17 million MAUs (Monthly Active Users) and 30,000 online retailers, generating more than $1 billion in savings during the past year. Forward-Looking Statements This week PayPal announced that it paid $4 billion for Honey Science, a startup that was launched in 2012. This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen. From notifying you when a price drops, to showing you the lowest prices available, Honey provides you with the information that you need to make the best decisions with your money. PayPal was once a part of Amazon competitor eBay, and Amazon does not accept PayPal as an option in check-out. Honey also has the advantage of a treasure trove of data. Technology companies will be under scrutiny because thats where expectations for revenue growth are close to the highest. In the press release, PayPal stated that the agreement "will transform the shopping experience for PayPal's consumers while increasing sales and customer engagement for its merchants." SAN JOSE, Calif., Nov. 20, 2019 /PRNewswire/ -- PayPal Holdings, Inc.(NASDAQ: PYPL) today announced that it has agreed to acquire Honey Science Corporation, a rapidly-growing technology platform for shopping and rewards, for approximately $4 billion. Honey Co-founders George Ruan and Ryan Hudson will continue to lead the Honey team as part of PayPal's global consumer product and technology organization, reporting to Senior Vice President John Kunze. Honey Science Corporation is an L.A.-based tech company building tools to help people save time and money when shopping online. If frictionless payments become commoditized, essentially available from nearly every merchant and financial platform, then a large part of PayPal's value proposition to consumers and merchants simply disappears. Punch was the missing piece of our puzzle. Data is a real-time snapshot *Data is delayed at least 15 minutes. Calif. Analysts expect companies in the S&P 500 to report a jump in earnings for the first three months of the year. That adds a tremendous amount of relevance to consumers." Qatalyst Partners is acting as sole financial adviser to Honey, while Latham & Watkins, LLP is acting as its legal adviser. Honey will accelerate its growth by driving adoption among PayPal and Venmos more than 275 million active consumer accounts and sourcing exclusive offers from PayPals extensive network of 24 million merchant accounts. Get this delivered to your inbox, and more info about our products and services. Perella Weinberg Partners LP is acting as sole financial adviser to PayPal, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as its legal adviser with regard to the transaction. Bots perform the massive computational tasks that are requiredand present the subsequent actions or data to humans for more subjective decision-making.. Visit. Despite the initial onboarding friction of installing a browser plug-in, Honey fulfills its promise of decreasing the time and energy needed to find online deals. grabinovitch@paypal.com, Media Relations Contact Image source: PayPal Holdings. You also have the option to opt-out of these cookies. So how did Honey create such a strong platform? When typing in this field, a list of search results will appear and be automatically updated as you type. PayPal Market Cap $79B Today's Change (-0.73%) -$0.51 Current Price $69.26 Price as of December 16, 2022, 4:00 p.m. Gabrielle Rabinovitch More unfamiliar is Honey's mobile app, which launched earlier this year. The forward-looking statements contained in this announcement speak only as of the date hereof. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. Analysts are calling for gains of more than 10 percent for a wide range of companies, from Apple to PayPal. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. About HoneyHoney Science Corporation is an L.A.-based tech company building tools to help people save time and money when shopping online. The company develops toolsincluding a Chrome browser add-onthat make it easier for. Visit www.joinhoney.com to shop smarter. Honey, in combination with PayPal's two-sided network, will transform the shopping experience . 2. PayPal closes $4bn Honey acquisition. Honey's hyper-personalization approach puts the buyer first in terms of selecting the products they want and finding the lowest possible price. Since being spun off from eBay in 2015, PayPal has been striving to fill a niche by providing a platform-agnostic digital wallet, making online and mobile payments frictionless for its users. The move puzzled many observers, as it is not . The forward-looking statements contained in this announcement speak only as of the date hereof. Cost basis and return based on previous market day close. Similarly, PayPal applies a fix-fee and percentage-fee paid by the vendor for each financial transaction facilitated. SAN JOSE, Calif., Jan. 6, 2020 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has completed its acquisition of Honey Science Corporation for approximately $4 billion in cash. The acquisition is expected to be accretive to PayPal's non-GAAP earnings per share in 2021. The acquisition makes a lot of sense for PayPal given the competitive landscape, said Richie Serna, who is the CEO of Finix. Shop and Buy. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Punch started working with Honey when they had 12 employees, and they were a very small SaaS company who was just starting to generate revenue. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering 300 million consumers and merchants in more than 200 markets to join and thrive in the global economy. Honey Science Corporation Hello, I recently found out that PayPal bought the Honey Science Corporation. PayPal said it expected Honey to be accretive to its non-GAAP earnings by 2021, and while it's hard to project Honey's 2019 revenue total from this information, it's safe to say that PayPal paid a steep premium to acquire the company. With approximately 17 million monthly active users, Honey has helped millions of people find more than $1 billion in savings in the past year. This cookie is installed by Google Analytics. At PayPal, we promise to treat your data with respect and will not share your information with any third-party. PayPal Honey Venmo PayPal Zettle. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. The acquisition supports PayPal and Honeys shared mission to simplify and personalize shopping experiences for consumers while driving conversion and increasing consumer engagement and sales for merchants. Webcast and Conference Call Information from 8 AM - 9 PM ET. Yet more players continue to crowd the space, most notably from Apple Pay, Square's Cash App, and Zelle. I am a bot, and this action was performed automatically. In November, PayPal Holdings ( PYPL -0.38%) announced the $4 billion acquisition of Honey Science, an e-commerce tool that helps shoppers find deals. acoffee@paypal.com They charged me 75$!! . Honey also collects data from its users that might prove to be valuable to PayPal. Investor Relations Contacts Honey adopts a future-forward model of automation and analytics. By providing your email address below, you are providing consent to PayPal to send you the requested Investor Email Alert updates. Materiality Assessment & Stakeholder Engagement, http://www.prnewswire.com/news-releases/paypal-completes-acquisition-of-honey-300981363.html. In addition, an archive of the webcast will be accessible for 90 days through the same link. PayPal.com Matthew Cochrane owns shares of PayPal Holdings and Square. Granting Status. Customers who have buried themselves in pages of Google search results in the past looking for working promo codes can now instantly identify and apply them using Honey. Visit www.joinhoney.comto shop smarter. What started as a browser extension has grown into a suite of free tools that help everyone shop with confidence. Adam Weiss, who operates Weiss Digital Consulting: After creating something that solved a need for consumers, they built their relationships with brands and retailers through the affiliate channel, which gave them scale and efficiency. Honey's customer base also matches up nicely with Venmo users. ", The company said it collects "limited shopping data" and uses it to analyze information on retail websites so users can find the best coupon, but does "not sell your personal information. Honey was profitable on a net income basis in 2018. You can sign up for additional alert options at any time. For more information, visit, Honey Science Corporation is an L.A.-based tech company building tools to help people save time and money when shopping online. Honey currently works across approximately 30,000 online retailers ranging from fashion and technology, to travel and pizza delivery. This category only includes cookies that ensures basic functionalities and security features of the website. InvestorRelations@PayPal.com. Honey co-founders Ryan Hudson and George Ruan. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Venmo.com It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding, said Dan Schulman, president and CEO of PayPal. Necessary cookies are absolutely essential for the website to function properly. Diversity, Inclusion, Equity and Belonging. Press question mark to learn the rest of the keyboard shortcuts. 06 January 2020. Honey, in combination with PayPal's two-sided network, will transform the shopping experience for PayPal's consumers while increasing sales and customer engagement for its merchants. To make the world smarter, happier, and richer. What started as a browser extension has grown into a suite of free tools that help everyone shop with confidence. Honey will accelerate its growth by driving adoption among PayPal and Venmo's more than 275 million active consumer accounts and sourcing exclusive offers from PayPal's extensive network of 24 million merchant accounts. Well have the ability to help millions of retailers efficiently reach consumers with offers that deliver more and more value to Honey members.. The acquisition supports PayPal and Honey's shared mission to simplify and personalize shopping experiences for consumers while driving conversion and increasing consumer engagement and sales for merchants. "We're thrilled to complete this transformative transaction and to welcome the Honey team to the PayPal family," said Dan Schulman, president and CEO of PayPal. This would incentivize users to check their app more often, increasing user engagement on PayPal's platforms. Investor Relations Contacts As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales. After looking over the online competitive landscape, "We think that Honey actually has the leading platform and set of capabilities around that. (AP Photo/Jeff Chiu, File). Buy Now, Pay Later; Deals and Cash Back; . People Culture Diversity, Inclusion, Equity . More information about these and other factors that could adversely affect PayPal's results of operations, financial condition and prospects or that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in PayPal Holdings, Inc.'s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the "SEC"), and its future filings with the SEC. While it paid a high price for Honey Science, the potential created from the two entities' synergies is clear and feasible. Crew, Overstock, or Saks Fifth Avenue, and receive instant notifications when there's a better price. ", "We only use data in ways that directly benefit Honey members helping people save money and time and in ways they would expect. Qatalyst Partners is acting as sole financial adviser to Honey, while Latham & Watkins, LLP is acting as its legal adviser. Honey was founded in 2012 and headquartered in Los Angeles. PayPal Holdings, Inc. announced that it has agreed to acquire Honey Science Corporation, a rapidly-growing technology platform for shopping and rewards, for approximately $4 billion. Image source: PayPal Holdings. Sign up to receive the latest news to your email. It works through a browser extension known as a "plug-in" that automatically searches for discounts as customers shop on sites like Amazon. PayPal CEO: Consumer spend is still strong and we are not seeing a recession, During the height of the holiday shopping season, Amazon warned some users that the browser extension Honey could be a "security risk.". The strategy has clearly worked, as PayPal now boasts more than 300 million active accounts that use its platforms to make about 40 transactions per year. Down 63.5% in This Bear Market, Can PayPal Recover in 2023? The acquisition is expected to be accretive to PayPals non-GAAP earnings per share in 2021. Honey has continued to grow and evolve, expanding its suite of products and services to include a mobile shopping assistant, offers and rewards program, and price-tracking tools and alerts. usually within minutes, free-of-charge using PayPal's in-app cash-a-check feature. And lastly, to do that, they built a great team. 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Subject to customary closing conditions, including the receipt of regulatory approvals, the transaction is expected to close in the first quarter of 2020. Factors that could cause or contribute to such differences include, but are not limited to, the reaction to the transaction of Honey's customers and business partners, the reaction of competitors to the transaction, the retention of Honey's employees, PayPal's plans for Honey, economic and political conditions in the global markets in which PayPal and Honey operate, the future growth of PayPal's and Honey's businesses and the possibility that integration following the transaction may be more difficult than expected. The Motley Fool has a disclosure policy. Sign up to receive the latest news to your email. Honey co-founders George Ruan and Ryan Hudson will continue to lead the Honey team as part of PayPals global consumer product and technology organization, reporting to Senior Vice President John Kunze. If you experience any issues with this process, please contact us for further assistance. SAN JOSE, Calif., Jan. 6, 2020 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has completed its acquisition of Honey Science Corporation for approximately $4 billion in cash. Contacts Forward-looking statements and information relate to future events and future performance and reflect PayPal's expectations regarding the impact of this transaction on PayPal's and Honey's financial and operating results and business, the operation and management of Honey after the acquisition, and the timing of the closing of the acquisition. Honey is essentially automating coupons, price monitoring, and rewards for customers in a manner that is similar to how other companies are using intelligent automation to engineer and optimize business, interaction, and cognitive processes. With approximately 17 million monthly active users, Honey has helped millions of people find more than $1 billion in savings in the past year. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering 300 million consumers and merchants in more than 200 markets to join and thrive in the global economy. This latest deal seems to fit well within PayPal's growing payments platform. PayPal's management has proven to be adept at deal-making in the past. "Honey is amongst the most transformative acquisitions in PayPal's history. After submitting your request, you will receive an activation email to the requested email address. PayPal paid $4 billion for Honey in December the largest acquisition in the payment company's history. Your data with respect and will not share your information with any third-party plug-in '' that automatically searches discounts! 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