With this investment, Pinterest will repurchase shares of its Class A common stock through a $1 billion accelerated share repurchase agreement, the social media platform said in a Tuesday (March 3) news release.
“We delivered record revenue in 2025, with users reaching all-time highs for ten consecutive quarters and more than 80 billion monthly searches on our platform, as we continue to deliver strong innovation in visual search using AI,” Pinterest CEO Bill Ready said in the release.
“We are excited to continue our partnership with Elliott for the next phase of Pinterest’s growth. Elliott’s investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest.”
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Marc Steinberg, partner at Elliott and a member of Pinterest’s board, said his firm first invested in the platform in 2022 and has a “strong conviction” in the company’s trajectory.
The announcement comes weeks after a report that Pinterest was racing to add artificial intelligence (AI) tools to its app as it deals with a slowing ad business and increased competition from AI chatbots.
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The company is also working to improve user and revenue growth and advertisers’ return on spending on the scrapbooking app, according to a report by The Information.
Pinterest has had trouble gauging the effectiveness of its ads and encouraging users to check in with the app as often as they visit other social media apps, the report added. The company is also worried that AI chatbots could draw away users who would otherwise turn to Pinterest for things such as planning a wedding.
Among the measures the company has taken is updating its recommendation algorithms to suggest both ads and regular posts that are similar to items users are searching for. The report said this has helped lead to a 10% return on advertisers’ spending.
Pinterest said in late January that it was laying off around 700 employees, the equivalent of about 15% of its staff, as the company moves more resources to AI. The company said in a securities filing that the move was part of a restructuring effort that involves shifting resources to AI-focused roles and teams and “prioritizing AI-powered products and capabilities.”
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