SAN FRANCISCO — Pinterest has held talks to purchase VSCO, a pictures app that spawned a teenage social media craze, in accordance to two individuals with data of the matter.
The discussions are ongoing, mentioned the individuals, who declined to be recognized as a result of they weren’t licensed to communicate publicly. A deal worth 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 individuals 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 targeted on increasing its enterprise. “We’re always meeting with different companies across the creative space at any given time and do not discuss rumors or speculation,” she mentioned.
Pinterest and VSCO, which stands for Visual Supply Company, are a part of a gaggle of tech corporations which might be extremely targeted on digital photos and visible enhancing and that rely much less on social networking options. Pinterest, a digital pin board web site that went public in 2019, lets its customers uncover and save photos to encourage inventive tasks or to plan vital points of their lives, together with dwelling renovations, weddings and meals.
VSCO, a 10-year-old start-up, makes an app for enhancing and sharing photos and movies. In 2019, it grew to become in style with a Generation Z group that got here to be often called “VSCO girls,” who have been recognized for carrying 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 in style with youthful audiences and that has experience in photo- and video-editing applied sciences might bolster its core service, the individuals mentioned.
Since Pinterest went public, its income has grown, although analysts have mentioned they don’t anticipate Pinterest to turn out to be commonly worthwhile till 2022. It has additionally expanded internationally.
During the pandemic, the firm skilled a surge of curiosity as individuals have 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, one among the largest publicly introduced particular person settlements for gender discrimination. Two feminine staff of colour who give up final yr additionally publicly mentioned their experiences with racist and sexist feedback, pay inequities and retaliation at the firm.
Founded in 2011, VSCO grew to become recognized amongst youthful customers as a form 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 individuals for further options. Of its 100 million registered customers, greater than two million are paying subscribers.
When VSCO ladies grew to become a cultural phenomenon in late 2019, investor curiosity in the start-up swelled. But 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 cellular app for video enhancing, and mentioned it deliberate to proceed buying corporations in 2021.
