Pinterest to purchase purchasing platform The Sure amid e-commerce push
Pinterest Inc. announced a deal Thursday to buy shopping platform The Yes, as the social-media company attempts to increase the e-commerce activity on its platform.
Pinterest PINS, +5.86% did not disclose a purchase price for the company, which uses algorithmic techniques to develop a personalized feed for shoppers. Pinterest began testing a similar service called Your Shop in the US earlier this year, with plans to roll it out farther later in the year.
The Yes was founded by Chief Executive Julie Bornstein, who was previously chief operating officer for online-shopping destination Stitch Fix Inc. SFIX, +8.01% after focusing on e-commerce at traditional retailers including Urban Outfitters Inc. URBN, -1.64% and Nordstrom Inc JWN, +1.56%,
as well as Chief Technology Officer Amit Aggarwal. Bornstein will take over Pinterest’s efforts to develop better shopping technology, with the announcement stating that she “will lead shopping vision and strategy across Pinterest, creating a new and strategic organization dedicated to Pinterest’s taste-driven shopping efforts.”
“I’ve spent my career at the intersection of shopping, fashion and technology and have seen first-hand the valuable impact of building technology that enables brands to join a platform with ease while enabling customers to share their preferences,” Bornstein said in Thursday’s announcement. “Joining forces with Pinterest to broaden our reach utilizing such an inspirational platform is an exciting and ideal next step for our team and technology.”
The acquisition is expected to close in the second quarter, and Pinterest expects to shut down The Yes app and website after the deal is complete. The announcement said other employees of The Yes would be brought into Pinterest as the company attempts to integrate its technology into the platform.
“We’re very excited about The Yes’s talented team and technology as we build dedicated shopping experiences on Pinterest,” Silberman, to whom Bornstein will report, said in a statement.
Pinterest has struggled to add users in the past year, and Wall Street analysts have looked for the company to increase engagement and revenue from the users it has won over. Silberman has voiced plans to make Pinterest a shopping destination and adding products that would allow users to complete all the tasks needed to find and purchase goods on the platform.
“We believe that consumers want positive environments dedicated to helping them go from the spark of inspiration through to planning and purchasing,” executives told investors in a letter in April. “With inspiring new video formats, improvements in core search and recommendations, and an ever improving shopping experience, we see tremendous growth opportunities ahead of us.”
Pinterest stock was stable in after-hours trading following the announcement. Shares have declined 44.9% so far this year, as the S&P 500 index SPX, +1.84% has fallen 12%.