Pinterest Is Said to Be in Talks to Acquire the Photo App VSCO
SAN FRANCISCO — Pinterest has held talks to purchase VSCO, a pictures app that spawned a teenage social media craze, in accordance to two folks with information of the matter.
The discussions are ongoing, mentioned the folks, who declined to be recognized as a result of they weren’t approved to communicate publicly. A deal worth couldn’t be discovered; 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, mentioned the firm was centered on increasing its enterprise. “We’re at all times assembly with completely different firms throughout the artistic area at any given time and don’t talk about rumors or hypothesis,” she mentioned.
Pinterest and VSCO, which stands for Visible Provide Firm, are a part of a gaggle of tech firms which can be extremely centered on digital pictures and visible enhancing 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 pictures to encourage artistic initiatives or to plan essential features of their lives, together with dwelling renovations, weddings and meals.
VSCO, a 10-year-old start-up, makes an app for enhancing and sharing pictures and movies. In 2019, it turned standard with a Technology Z group that got here to be generally known as “VSCO ladies,” who had been recognized for carrying Crocs and carrying Hydro Flasks. The thought 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 standard with youthful audiences and that has experience in photo- and video-editing applied sciences may bolster its core service, the folks mentioned.
Since Pinterest went public, its income has grown, although analysts have mentioned they don’t count on Pinterest to change into recurrently worthwhile till 2022. It has additionally expanded internationally.
Throughout the pandemic, the firm skilled a surge of curiosity as folks had been locked down and turned to extra digital actions. Pinterest added 100 million month-to-month lively customers final yr and now has a complete of 450 million month-to-month lively customers.
The San Francisco firm additionally confronted social unrest final yr. In December, it agreed to pay $22.5 million to settle a gender discrimination and retaliation lawsuit from its former chief working officer, considered one of the largest publicly introduced particular person settlements for gender discrimination. Two feminine staff of shade who stop final yr additionally publicly mentioned their experiences with racist and sexist feedback, pay inequities and retaliation at 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 put much less strain on customers to construct up a fan base. VSCO additionally eschews promoting, as an alternative incomes cash by charging folks for further 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 in the start-up swelled. However the fad has since cooled off. When the pandemic hit, VSCO laid off 30 p.c of its staff. In December, it acquired Trash, a cell app for video enhancing, and mentioned it deliberate to proceed buying firms in 2021.
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