The discussions are ongoing, stated the folks, who declined to be recognized as a result of they weren’t licensed to talk publicly. A deal value couldn’t be realized; Pinterest has a market capitalization of about $49 billion, whereas VSCO has raised $90 million in funding and was final valued at $550 million. An acquisition might not materialize, the folks cautioned.
Representatives from Pinterest and VSCO (pronounced “vis-coe””) declined to touch upon deal talks.
Julie Inouye, a spokeswoman for VSCO, stated the corporate was targeted on increasing its enterprise. “We’re all the time assembly with completely different firms throughout the inventive area at any given time and don’t talk about rumors or hypothesis,” she stated.
Pinterest and VSCO, which stands for Visible Provide Firm, are a part of a bunch of tech firms which can be extremely targeted on digital photos and visible modifying and that rely much less on social networking options. Pinterest, a digital pin board website that went public in 2019, lets its customers uncover and save photos to encourage inventive initiatives or to plan necessary points of their lives, together with residence renovations, weddings and meals.
VSCO, a 10-year-old start-up, makes an app for modifying and sharing photos and movies. In 2019, it turned common with a Era Z group that got here to be generally known as “VSCO girls,” who have been identified for sporting Crocs and carrying Hydro Flasks. The concept of VSCO ladies went viral, inspiring social media imitation, mockery, memes and Halloween costumes.
For Pinterest, shopping for a once-buzzy start-up that was common with youthful audiences and that has experience in photo- and video-editing applied sciences may bolster its core service, the folks stated.
Since Pinterest went public, its income has grown, although analysts have stated they don’t anticipate Pinterest to turn out to be usually worthwhile till 2022. It has additionally expanded internationally.
In the course of the pandemic, the corporate skilled a surge of curiosity as folks have been locked down and turned to extra digital actions. Pinterest added 100 million month-to-month lively customers final 12 months and now has a complete of 450 million month-to-month lively customers.
The San Francisco firm additionally confronted social unrest final 12 months. In December, it agreed to pay $22.5 million to settle a gender discrimination and retaliation lawsuit from its former chief working officer, one of many largest publicly introduced particular person settlements for gender discrimination. Two feminine staff of coloration who stop final 12 months additionally publicly mentioned their experiences with racist and sexist feedback, pay inequities and retaliation on the firm.
Based in 2011, VSCO turned identified amongst youthful customers as a sort of anti-social community. The app doesn’t have likes, feedback or follower counts, so it appeared to place much less stress on customers to construct up a fan base. VSCO additionally eschews promoting, as an alternative incomes cash by charging folks for additional options. Of its 100 million registered customers, greater than two million are paying subscribers.
When VSCO ladies turned a cultural phenomenon in late 2019, investor curiosity within the start-up swelled. However the fad has since cooled off. When the pandemic hit, VSCO laid off 30 % of its staff. In December, it acquired Trash, a cell app for video modifying, and stated it deliberate to proceed buying firms in 2021.