Bending Spoons to Acquire Vimeo for $1.38 Billion in Cash
Vimeo announced on Wednesday that it has entered into an agreement to be acquired by Bending Spoons, a major European mobile app developer, in an all-cash transaction valued at approximately $1.38 billion. The deal is expected to finalize in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Following completion, Vimeo will be delisted from public stock exchanges.
Strategic Intent and Future Plans
Bending Spoons expressed long-standing interest in acquiring Vimeo, with initial discussions dating back to March 2024. Luca Ferrari, CEO and co-founder of Bending Spoons, emphasized the company’s commitment to long-term ownership and operational control. Ferrari stated, “We look forward to realizing Vimeo’s full potential as we reach new heights together.”
Post-acquisition, Bending Spoons intends to make significant investments across key markets, particularly in the United States, focusing on both Vimeo’s creator and enterprise segments. The company aims to enhance platform performance, reliability, and introduce advanced AI-driven features to broaden Vimeo’s customer base.
Concerns Over Previous Acquisition Practices
Despite Bending Spoons’ stated ambitions, its acquisition history raises concerns. After acquiring Evernote in 2022, Bending Spoons implemented substantial layoffs, relocated operations to Europe, and curtailed features including the discontinuation of Linux and legacy app versions. Similarly, following its 2024 acquisition of WeTransfer, the company reduced staff by 75% and imposed stringent limits on free user transfers.
Vimeo’s Market Challenges
Vimeo, founded in 2004 and spun off from IAC in 2021, has witnessed a steep decline in market value—losing nearly 90% since becoming independent. This decline prompted Vimeo’s leadership to explore strategic alternatives. CEO Philip Moyer expressed optimism about the partnership, highlighting Bending Spoons’ commitment to expanding Vimeo’s product suite, which includes Self-Serve, OTT/Vimeo Streaming, and Vimeo Enterprise. Moyer remarked, “We believe this partnership will unlock even greater focus for our team and customers as we continue towards our mission to be the most innovative and trusted video platform for businesses globally.”
FinOracleAI — Market View
The acquisition is likely to have a neutral short-term impact on the market. While Bending Spoons’ cash offer provides immediate value to Vimeo shareholders and signals confidence in the platform’s potential, the company’s track record of aggressive cost-cutting post-acquisition may raise concerns among users and employees. Investors should monitor regulatory approval progress and early integration moves, particularly regarding staffing and feature development, to gauge the deal’s longer-term impact.
Impact: neutral
