It’s been reported that Pinterest, the famous social bookmarking site, is holding talks to buy VSCO, a popular photography app with a social aspect. Pinterest has held talks to buy the popular photo app according to The New York Times.

• Though not confirmed, Pinterest is an ideal suitor in a case where VSCO is seeking to sell to another company. Both companies overlap very much, being in the social media space with a focus on high-quality images and videos.

• As to price, Pinterest can very much afford VSCO thanks to a large cash balance of nearly $700 million as of the end of 2020 and a market value of $49 billion if shares are used to finance the purchase. 

• VSCO, a ten-year-old startup, has raised about $90 million in funding and was valued at $550 million from its last funding round. Given that, a Pinterest acquisition would likely be priced in the hundreds of millions of dollars or even over a billion.

• VSCO is a very popular app with 100 million registered users. of which over two million are paying subscribers. It’s a photo app that garnered a reputation for itself as a kind of anti-social network without the usual likes, comments, and follower counts present on mainstream social networks. It also shunds advertising and makes money primarily from subscriptions for premium features.

• Since Pinterest went public in 2019, the company’s revenue has risen regularly and appeased Wall Street as a result, and to maintain that rise, acquiring an app like VSCO is ideal.

• Pinterest reported $1.7 billion in revenue for 2020. It ended the year with 459 million global monthly active users.

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