Pinterest Now Worth $1.5 Billion

A blog about business and economics.
May 17 2012 12:11 PM

Pinterest Gets $1.5 Billion Valuation

Stuff that's popular on Pinterest right now.


Pinterest raised $100 million in additional capital today at a $1.5 billion valuation for the company, prompting Kevin Roose to remark that "Whether Pinterest can generate revenue remains to be seen."

This relates to one of the points I make in my piece about Facebook and the decline of the IPO. One of the things big tech companies—Facebook, Apple, Google, Microsoft, Amazon—do is they invest resources (money, people's time) in developing new features to add to their existing ecosystems. One way of investing resources to add features is to simply buy companies. And in many cases—of which Pinterest is possibly one—you have more value selling out to become a component of a larger ecosystem than you do trying to become a profitable standalone firm. Pinterest has some ideas and technology that obviously people like to use, that's something that's of value to plenty of existing companies that do have revenue. Obviously that kind of acquisition model can go awry. Yahoo's acquisition of Flickr is an excellent example. But it can also work out well. By all accounts Apple will be rolling out new maps applications that aren't powered by Google Maps in the very near future. Those apps will be built on a backbone of acquisitions the company made of small mapping firms. To look at those firms in their pre-acquisition days and ask if they could generate revenue would be the wrong way to look at it.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.



Blacks Don’t Have a Corporal Punishment Problem

Americans do. But when blacks exhibit the same behaviors as others, it becomes part of a greater black pathology. 

I Bought the Huge iPhone. I’m Already Thinking of Returning It.

Scotland Is Just the Beginning. Expect More Political Earthquakes in Europe.

Lifetime Didn’t Think the Steubenville Rape Case Was Dramatic Enough

So they added a little self-immolation.

Two Damn Good, Very Different Movies About Soldiers Returning From War

Medical Examiner

The Most Terrifying Thing About Ebola 

The disease threatens humanity by preying on humanity.

Students Aren’t Going to College Football Games as Much Anymore, and Schools Are Getting Worried

The Good Wife Is Cynical, Thrilling, and Grown-Up. It’s Also TV’s Best Drama.

  News & Politics
Sept. 19 2014 9:15 PM Chris Christie, Better Than Ever
Business Insider
Sept. 20 2014 6:30 AM The Man Making Bill Gates Richer
Inside Higher Ed
Sept. 19 2014 1:34 PM Empty Seats, Fewer Donors? College football isn’t attracting the audience it used to.
  Double X
The XX Factor
Sept. 19 2014 4:58 PM Steubenville Gets the Lifetime Treatment (And a Cheerleader Erupts Into Flames)
  Slate Plus
Slate Picks
Sept. 19 2014 12:00 PM What Happened at Slate This Week? The Slatest editor tells us to read well-informed skepticism, media criticism, and more.
Brow Beat
Sept. 19 2014 4:48 PM You Should Be Listening to Sbtrkt
Future Tense
Sept. 19 2014 6:31 PM The One Big Problem With the Enormous New iPhone
  Health & Science
Medical Examiner
Sept. 19 2014 5:09 PM Did America Get Fat by Drinking Diet Soda?   A high-profile study points the finger at artificial sweeteners.
Sports Nut
Sept. 18 2014 11:42 AM Grandmaster Clash One of the most amazing feats in chess history just happened, and no one noticed.