Pinterest is in talks to acquire the anti-social network photo app VSCO (pronounced Vis-Co). VSCO is Instagram's hipster sibling, that doesn't do likes, comments or followers... oh and also doesn't do advertising. It makes money through its 2 million paying customers.
Pinterest has a market cap of about $49 billion, with 450 million users, while VSCO is valued at $550 million, with 100 million users. VSCO is a 10 year-old start-up but has remained a low key profile, shown by its rookie valuation to subscribers ratio. In 2019, Gen Z made "VSCO Girl" a personality and popularized many VSCO girl memes. Since then, the fad has faded and VSCO laid off 30% of its work force in the pandemic.
Short Squeez Takeaway: Pinterest stock is up 2.2x since its IPO in 2019 and had a blockbuster 2020 with 75% revenue growth, driven by bored teenagers with nothing better to do than digitally pinning their life away. With re-opening around the corner, VSCO could give Pinterest some much needed post-pandemic growth. We would also be surprised if Zuck and SNAPiegel don't get involved. (Instagram tried buying VSCO in 2013)