Pinterest Reportedly In Talks To Acquire VSCO: NYT

Talks are taking place between Pinterest and VSCO about a possible acquisition.

What Happened: Social media company Pinterest Inc PINS is in talks to acquire Visual Supply Co., maker of the photo-editing app VSCO, New York Times reports, citing two people familiar with the matter. 

According to the Times, the discussion about the acquisition is ongoing. VSCO was last valued at $550 million and recently raised $90 million in funding. Pinterest has a market value of about $49 billion. 

In a statement to the Times, VSCO spokesperson Julie Inouye said that the company does not discuss rumors and is “always meeting with different companies across the creative space at any given time.”

Why It Matters: People familiar with the matter say that the deal could boost Pinterest’s core service. The acquisition of VSCO’s editing tool and user base would enhance Pinterest's market value. 

Last year during the pandemic, Pinterest saw a surge in traffic and added 100 million monthly active users. At present, it has 450 million monthly active users.

Founded in 2011, VSCO has 100 million registered accounts.

Price Action: Pinterest shares were up 12.52% this past week, ending at $77.73.