Pinterest plans to acquire Visual Supply Co., maker of VSCO’s photo-editing app with a young audience, The New York Times reports, citing anonymous sources.
Pinterest (PINS) shares rose 5% on Friday amid news of a potential acquisition of the VSCO app by privately held Visual Supply Co. in The New York Times. According to sources, the deal is not guaranteed, the amount is also unknown.
A spokeswoman for VSCO said the company is focused on expanding its business, adding: “We always meet with representatives from different companies in the creative space at any given time and do not discuss rumors or speculation.”
The VSCO app is a photo and video editing and sharing platform, 75% of the audience of over 100 million registered accounts are under 25 years old. VSCO does not include likes, comments and followers, but allows users to share the images / videos they create.
VSCO offers free and paid versions, the latter including over 200 presets (camera presets), advanced photo and video editing tools, and additional content in the form of tips and creative tutorials.
The audience of VSCO paying users is about 2 million people.
California-based Visual Supply was founded in 2011 after last raising $ 90 million in funding, with a market value of $ 550 million.
A year ago, Visual Supply CEO Joel Flory announced 45 job cuts due to the coronavirus pandemic.
Pinterest has had a good year last year, with shares growing over 250% and 100 million users, bringing Pinterest’s total monthly active user base to 459 million worldwide.
Market analysts say the VSCO acquisition could benefit Pinterest by expanding its audience with more young users and adding useful new photo and video editing tools to the platform.
Pinterest’s business model is different from Facebook’s seemingly similar, better-monetized Instagram app (FB), as the company positions itself not as a social network, but as a platform of “useful content and inspiration”.
Pinterest’s recent efforts to expand its international audience and advertising products for brands have been noted by marketers, and the company has managed to significantly improve its performance. Pinterest posted net income of $ 283.2 million in 2020, up from $ 17.9 million in 2019.
Pinterest stock is up nearly 18% since early 2021.