Discussions are ongoing, people said, who were refused to be identified because they were not authorized to speak publicly. The deal value could not be learned; Pinterest has a market capitalization of about $ 49 billion, while VSCO raised $ 90 million in funding and was valued at $ 550 million. There may not be an acquisition, warns people.
Representatives of Pinterest and VSCO (pronounced “vis-coe”) declined to comment on the negotiation of the deal.
VSCO spokeswoman Julie Inouye said the company was focused on expanding its business. “We are always meeting with various companies at a creative location at any given time and do not discuss rumors or speculation.
Pinterest and VSCO, which stands for Visual Supply Company, are part of a group of tech companies that are highly focused on digital image and visual editing and who rely less on social networking features. Pinterest, a digital pin board site that Went public in 2019, Lets its users find and save images to inspire creative projects or plan important aspects of their lives, including home renovations, weddings and meals.
VSCO, a 10-year-old start-up, builds an app To edit and share images and videos. In 2019, it became popular with a Generation Z group that became known as “.VSCO Girls, “Who were known for wearing Crocs and carrying hydro bottles. The idea of VSCO girls went viral inspired by social media gimmicks, fakes, mimes and Halloween costumes.
According to People, for Pinterest, purchasing a once-buzzy start-up that was popular with younger audiences and which specializes in photo- and video-editing techniques can enhance its core service.
Since Pinterest went public, its revenue has grown, though analysts have said that they do not expect Pinterest to become regularly profitable by 2022. It has also expanded internationally.
During the epidemic, the company experienced a surge of interest as people were laid off and turned to more digital activities. Pinterest added 100 million monthly active users last year and now has a total of 450 million monthly active users.
The San Francisco company also faced social unrest last year. In December, it agreed to pay $ 22.5 million to dispose of it A gender discrimination and retaliation lawsuit From its former chief operating officer, one of the largest publicly announced settlements for gender discrimination. Two female employees of color last year also publicly discussed their experiences with racist and sexist comments, disparities in the company, and retaliation.
Founded in 2011, VSCO became known as a kind of anti-social network among younger users. Likes, comments or followers do not matter in the app, so it puts less pressure on users to create a fan base. VSCO advances advertising, earning people money for additional features instead. Out of its 100 million registered users, more than two million customers are paying.
When VSCO Girls became a cultural phenomenon in late 2019, investor interest in start-ups increased. But the craze has cooled since. When the epidemic hit, VSCO laid off 30 percent of its workforce. In December, it acquired Trash, a mobile app for video editing, and said it planned to continue acquiring companies in 2021.