The online video platform Vimeo will be acquired by Bending Spoons for $1.38 billion in cash. Bending Spoons recently acquired Brightcove, another online video company, for $233 million and then shed around a third of its 600 or so staff. It previously acquired WeTransfer and Evernote, laying off large numbers of their staff. The Vimeo web site currently says it has over 1,200 staff, for now.
Vimeo shareholders will receive $7.85 per share in cash, a premium of over 90% over the average share price over the previous two months. The deal is expected to close in the fourth quarter of 2025.
“After a disciplined review of strategic alternatives, the board unanimously determined that this all-cash transaction delivers compelling, certain value to Vimeo shareholders and positions the company to accelerate its strategic roadmap as part of Bending Spoons,” said Glenn Schiffman, the chairman of Vimeo.
Bending Spoons is an Italian technology company founded in 2013 in Copenhagen but now based in Milan. They have a history of acquiring existing online platforms that have proven product-market fit, slashing headcount, aiming to improve efficiency.
“We’re looking forward to welcoming Vimeo into the Bending Spoons portfolio,” said Luca Ferrari, the co-founder and chief executive of Bending Spoons. “Vimeo is a pioneering brand in the video space, serving a passionate, global community of creators and businesses. At Bending Spoons, we acquire companies with the expectation of owning and operating them indefinitely, and we look forward to realizing Vimeo’s full potential as we reach new heights together.”
Philip Moyer, the chief executive of Vimeo, said: “Luca and his team are committed to expanding our product across all segments: Self-Serve, OTT/Vimeo Streaming, and Vimeo Enterprise.”
Vimeo was founded in 2004 by Jake Lodwick and Zach Klein as a video sharing site for creators. The name Vimeo, an anagram of movie, was chosen by Lodwick as a combination of video+me.
In 2006, InterActiveCorp acquired a 51% stake in the parent company. By 2020, Vimeo was preparing to spin off from IAC and raised $150 million at a valuation of about $2.75 billion. Then in January 2021 Vimeo raised $300 million, Vimeo became a public company via a spinoff from IAC in May 2021, trading at US$47.15 per share, rising to a high of about US$58.
The share price subsequently declined. The $1.38 billion valuation implied by the acquisition represents a significantly lower value than at its peak.
Vimeo and Brightcove serve different sectors of the online video platform market but could offer potential synergies under common ownership. Vimeo focuses on creators and smaller businesses. Brightcove started out with a similar offering but has tended to serve enterprise customers.
There may be opportunities for combining or consolidating the two operations in some way, or sharing infrastructure. In any case, they have clearly both lost ground to the irrepressible rise of YouTube.