Bending Spoons to Acquire Vimeo in $1.38 Billion Deal, Taking Platform Private
Vimeo announced Wednesday it will be acquired by Italian app developer Bending Spoons in a deal worth about $1.38 billion, ending its four-year run as a publicly traded company.
Under the agreement, Vimeo shareholders will receive $7.85 per share in cash, representing a 63% premium to the stock’s previous close. Shares surged more than 60% to $7.74 following the announcement.
Vimeo, spun out of Barry Diller’s IAC, has struggled since its 2021 IPO, losing around 90% of its market value. Despite a surge in popularity during the pandemic, the company has faced mounting competition from YouTube and lower-cost enterprise rivals.
Analysts expect Bending Spoons to implement aggressive cost-cutting and revenue-focused strategies to leverage Vimeo’s technology assets. Analyst Paolo Pescatore noted the deal could mark a turning point, given Bending Spoons’ track record of revitalizing acquired firms.
The Milan-based company, valued at $2.55 billion last year, owns apps such as Evernote and Remini, and acquired WeTransfer in 2023. Vimeo will become its largest acquisition to date. CEO Philip Moyer said the focus will be on expanding self-service tools, OTT streaming via Vimeo Streaming, and enterprise solutions.
Vimeo has already downsized, cutting nearly 10% of its workforce this year after layoffs of 11% in 2023 and 6% in 2022.
Allen & Company LLC advised Vimeo, while J.P. Morgan, Wells Fargo, and BNP Paribas advised Bending Spoons. The transaction is expected to close in Q4 2025, with Bending Spoons seen as a potential U.S. IPO candidate in the near future.