Pinterest CEO: No Plans on Going Public Yet
With all the hype surrounding Twitter's (NYSE: TWTR) IPO, many investors are starting to ask “who's next?”
Pinterest's name can now be scratched off any potential list. CNET reported on November 6 that the popular photo-sharing website has no plans to join the ranks of other social media companies like Facebook (NASDAQ: FB) and Twitter to become a public company.
According to CEO Ben Silbermann, an IPO is not in the works as he wants the company to “stand on its own two feet” and that going public might go against company interests in growing a user base.
CNET explained that the company does not have a clear revenue stream and has yet to prove if it can make money. The company is still in the early stages of experimenting with “promoted pins,” which can serve as a tool for advertisements.
AllThingsD reported on October 23 that Pinterest recently raised $225 million, implying a $3.8 billion valuation. The funds will be allocated towards improving the company's international efforts, which has seen strong growth.
Notable investors in Pinterest includes Marc Andreeson. Andreeson is notoriously known for early-stage investments in companies prior to an IPO. His portfolio includes Facebook, Twitter, Groupon (NASDAQ: GRPN) and Zynga (NASDAQ: ZNGA). While management is not embracing the idea for an IPO today, its position can certainly change over time. Just over a year ago, Twitter CEO Dick Costolo was asked during an interview with CNBC if he ever plans on taking the company public. Costolo responded by saying “We have every hope and belief that we will be a successful — independent — company.” Costolo added that the company is focusing on growing users, employee base and focusing on rolling out ads.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.