According to the New York Times, citing two people familiar with the matter, Pinterest Inc. has negotiated the acquisition of Visual Supply Co., a maker of VSCO’s photo-editing application. This 10-year-old platform shares the early appeal of Instagram, providing a unique set of movie-like photo filters and image editors.
The report stated that the company is still focusing on its nominal products, adding video editing tools, and raising $90 million in funding, with a recent valuation of $550 million.
The report stated that it is in discussions with another company, Pinterest, which focuses on images and visual expressions, and cannot know the transaction price. A year ago, due to the coronavirus outbreak, VSCO laid off 45 employees.
CEO Joel Flory explained on LinkedIn that the startup “will need to switch to operating a self-sustaining business.” For acting as a place to collect and share images As far as Pinterest is concerned, access to the VSCO editing suite and user base will help increase its audience and potentially enhance the functionality of its own mobile app.
Both Pinterest and VSCO representatives declined to comment on the transaction discussions in this article. VSCO spokesperson Julie Inouye told The New York Times that VSCO is focused on expanding its business and “always meet with different companies in the creative space at any time.”
However, given Pinterest’s record level in the fourth quarter of last year, this timing will be reasonable. The company sees a surge in user and market value as the covid-19 lock-in gives many people plenty of time to scroll aimlessly on social media.
According to reports, Pinterest added 100 million new users in 2020 and now has nearly 460 million monthly active users worldwide. According to “The Times” report, Pinterest’s market value is about 49 billion U.S. dollars, and experts predict that the company’s total revenue will grow by more than 48% by 2021.
At this point, it is in Pinterest’s best interest to strike while the iron is hot and focus on building public opinion. Even if there are many people on the platform, you are more likely to encounter Pinterest’s voice haters than users praising Pinterest.
Moreover, although I didn’t go to high school in the hot weather, it was not the coolest place to surf the Internet at the time, and its image doesn’t seem to be shaken much since then.
The acquisition of VSCO is a service that eschews traditional social media metrics such as “likes” and several followers and is so popular in Gen Z that it gave birth to the “VSCO girl” meme of the same name, which may Inject new vitality into the brand.
One thing against Pinterest is its awesome workplace record. In the rapid development of the company in recent years, employees complained about certain severely harmful working conditions, and several women filed lawsuits, claiming that they had suffered racial discrimination.
Francoise Brougher, the former chief operating officer of Pinterest, resigned abruptly last year with little explanation, and later claimed that she was under pressure to leave due to complaints about sexism and salary inequality among Pinterest’s senior figures.