SAN FRANCISCO – Pinterest is in talks to buy VSCO, a photo app that sparked a teen social media craze, according to the two men.
Discussions continue, say people who have refused to be identified because they are not allowed to speak in public. The transaction price could not be learned. Pinterest has a market capitalization of about $ 49 billion, while VSCO has raised $ 90 million in funding, most recently estimated at $ 550 million. An people warned that the achievement may not be realized.
Representatives of Pinterest և VSCO (pronounced “VIS-coh”) declined to comment on the deal.
VSCO spokeswoman Jul Uli Inoue says the company is focused on expanding its business. «“We always meet with different companies in the creative field at any time, we do not discuss news or speculations,” he said.
Pinterest և VSCO, which acts as a Visual Supply Company, are part of a number of technology companies that are heavily focused on digital image և visual editing և less reliant on social networking features. Pinterest, a digital Pinboard site launched in 2019, allows its users to discover և save pictures to inspire creative projects or plan important aspects of their lives, including home remodeling, weddings և food.
VSCO, a 10-year-old startup, is developing a program to edit, distribute and distribute photos. In 2019, it became known as the Gen Z group, known as the “VSCO Girls”, known for wearing Crocs s Hydro Flasks. The idea of VSCO girls went viral, inspiring imitation of social networks, mockery, memes և Halloween costumes.
For Pinterest, when it was said that it was a hot advertising startup that was popular with younger audiences, that it had experience in photo and video editing technology, it could promote its core service.
Its revenue has risen since the launch of Pinterest, although analysts say they do not expect Pinterest to become profitable on a regular basis until 2022. It has also expanded internationally.
During the epidemic, the company sparked a wave of interest as people were blocked from taking more digital action. Last year, Pinterest added 100 million monthly active users, 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 settle a gender discrimination և revenge lawsuit filed by its former chief executive, one of the largest gender-specific individual settlements. Two female employees who resigned last year also publicly discussed their experiences with racist, sexist comments, pay inequality, and company retaliation.
Founded in 2011, VSCO became known as a kind of anti-social network among younger users. The app has no likes, comments, or followers, so it looks like less pressure is being put on users to build a fan base. VSCO avoids advertising by making money instead of charging for additional features. More than 2 million of the 100 million registered users are paying subscribers.
As the VSCO girls became a cultural phenomenon in late 2019, investor interest in the startup increased. But fashion was already cold then. When the epidemic began, VSCO laid off 30% of its employees. In December, it acquired Trash, a mobile video editing application, and announced plans to continue its acquisition in 2021.