The discussions are ongoing, stated the folks, who declined to be recognized as a result of they weren’t authorised to talk publicly. A deal value couldn’t be realized; Pinterest has a market capitalisation of about $49 billion, whereas VSCO has raised $90 million in funding and was final valued at $550 million. An acquisition might not materialise, the folks cautioned.
Representatives from Pinterest and VSCO (pronounced “VIS-coh”) declined to touch upon deal talks.
Julie Inouye, a spokesperson for VSCO, stated the corporate was centered on increasing its enterprise. “We’re all the time assembly with completely different corporations throughout the artistic house 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 gaggle of tech corporations which might be extremely centered on digital photos and visible enhancing and that rely much less on social networking options. Pinterest, a digital pinboard website that went public in 2019, lets its customers uncover and save photos to encourage artistic tasks or to plan necessary elements of their lives, together with dwelling renovations, weddings and meals.
VSCO, a 10-year-old startup, makes an app for the enhancing and sharing of photos and movies. In 2019, it turned fashionable with a Gen Z group that got here to be often called “VSCO ladies,” who have been recognized 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 startup that was fashionable 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, though analysts have stated they don’t anticipate Pinterest to change into 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 energetic customers final 12 months and now has a complete of 450 million month-to-month energetic 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 workers of color 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 recognized amongst youthful customers as a type 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 a substitute incomes cash by charging folks for further options. Of its 100 million registered customers, greater than 2 million are paying subscribers.
When VSCO ladies turned a cultural phenomenon in late 2019, investor curiosity within the startup swelled. However the fad has since cooled off. When the pandemic hit, VSCO laid off 30% of its workers. In December, it acquired Trash, a cell app for video enhancing, and stated it deliberate to proceed buying corporations in 2021.
