The San Francisco-based company, has agreed to acquire the technology and team behind Instapaper. Instapaper is a tool which helps people save webpages for later reading. Both parties haven’t disclosed the the terms and conditions of the acquisition yet. Pinterest confirmed one thing which is that they have also bought the majority stake seed-stage VC firm Betaworks. It is also confirmed that Instapaper will work as a separate app. Pinterest will be investing for the further development of the app. The majority of the team of Instapaper is relocating from New York to San Francisco.
How This Acquisition will Benefit Pinterest?
It’s not immediately obvious what Pinterest would want with Instapaper. Instapaper makes the majority of its revenue through paid version of app, subscription and selling advertising but its margins are slim likely. Still, Pinterest says that majority of their 100 million active users are already using their platform for saving articles for later reading, calling this a core use case. Now after acquiring Instapaper, they can collect more data on how users share and save articles. They will be knowing more about how users are deciding what they read and what they don’t read. And Pinterest can put the Instapaper to use more widely in the ecosystem, including the technologies of bolstering. Social network uses this technology for indexing text-based content and making recommendations and suggestions to the users.
Instapaper is available on web, Kindle, Android and iOS. First acquisition of Instapaper was in 2013 by Betaworks but now it has a new owner. Pinterest is planning to use the app of Instapaper for encouraging the users to save more articles to the website. It is a feature which existed for many years but not used frequently. They said that they will also use some of the Instapaper’s search functionality which will be integrated into Pinterest. Instapaper said that this acquisition would give them resources to grow their core mission of enabling users to discover, save and experience exciting web content