Pinterest files for IPO
The photo social media app reportedly files papers to go public later this year.
Pinterest is getting closer to going public this year. The social media app has reportedly confidentially filed for an initial public offering (IPO) with the US Securities and Exchange Commission(SEC).
Why is Pinterest filing for an IPO now?
Because of its high profits and popularity, Pinterest feels now is the right time to go public. Though there were rumours before, reports of the paperwork filing with the SEC makes the IPO news more official.
The very popular US online company was started by Ben Silbermann, Evan Sharp, and Paul Sciarra in 2010. The app connects users to pictures they’re interested in, so they can ‘pin’ or add the photos to their own personal boards. Pinterest has 250 million monthly active users and is visited by 40% of social media users. The website has also branched out into e-commerce by enabling visitors to directly buy items they like from the service. For example, if a customer likes or ‘pins’ a pair of jeans from Levi’s, they can click on a picture of the jeans to purchase them.
The company is considered a ‘unicorn’ worth $1 billion and has been valued at $12 billion. The corporation has also raised $ 1.5 billion in funding. The site has reportedly hired Goldman Sachs and JP Morgan Chase to lead its IPO.
Will Pinterest have a successful IPO?
In a year crowded with other unicorn IPO’s like Uber, Lyft, and Postmates, it could be hard for Pinterest to stand out when it goes public.
Andrew Lipsman, principal analyst at eMarketer, a data research company, noted that Pinterest has to demonstrate that its advertising can drive users to purchase items from the site.
‘Ultimately, it will have to prove that its ads are effective in building brands and driving commerce,’ said Lipsman.
Pinterest co-founder, Evan Sharp, said that the company would continue to be profitable because it be can more than a visual search engine.
‘The lasting impact of visual search won’t be any specific product or feature, rather what it enables people to do: turn anything they see into something they can use to discover more on the internet,’ said Sharp.
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