Vimeo is set to be acquired by Bending Spoons, a European software company known for building a portfolio of well-known digital services. The deal is valued at US$1.38 billion and is expected to be completed later this year. Once finalised, the agreement will take Vimeo private.
Bending Spoons has expanded rapidly in recent years, acquiring brands such as Evernote, WeTransfer, and Meetup. With the addition of Vimeo, the company is further strengthening its presence in the global software and content space.
Vimeo’s journey and recent challenges
Vimeo was founded in 2004 as a spinoff of CollegeHumor and quickly became a platform for creative video sharing. However, it has long struggled to compete with its biggest rival, YouTube. Over the past decade, the company has shifted its focus toward enterprise clients and creators seeking monetisation tools, moving away from its earlier consumer-focused strategy.
To generate more revenue, Vimeo has increased hosting fees and positioned itself as a service provider for professional content distribution. In 2023, Philip Moyer took over as chief executive officer, marking the start of a new phase that included the introduction of artificial intelligence tools. Despite these efforts, the company has faced financial pressures. Just last week, Vimeo announced plans to cut around 10 per cent of its workforce, highlighting the difficulties it continues to face in a highly competitive market.
Bending Spoons’ track record and future outlook
Bending Spoons has gained attention not only for its acquisitions but also for how it manages them. The company has been criticised for implementing layoffs across several of the businesses it bought and for introducing stricter conditions for free services. For instance, Evernote’s free plan was limited after its acquisition, while subscription costs for TapeACall were raised.
Despite such concerns, Bending Spoons says it is committed to long-term ownership of its brands. “At Bending Spoons, we acquire companies with the expectation of owning and operating them indefinitely, and we look forward to realising Vimeo’s full potential as we reach new heights together,” said Luca Ferrari, CEO and co-founder of Bending Spoons, in a press release.
The acquisition signals another major shift in the online video landscape. For Vimeo, the move could provide renewed stability and investment, while for Bending Spoons, it represents an opportunity to expand further into the creative and professional video market.
