Vimeo to be acquired by Bending Spoons in all-cash deal

Vimeo has agreed to sell itself to Italy's Bending Spoons. in a all-cash transaction valued at approximately $1.380 billion, a move that will return it to the private sector after just over four years on the stock market. The platform, which gained traction during the pandemic, has since grappled with a crowded video market and more aggressive pricing competitors.

Under the agreed terms, shareholders will receive $7,85 in cash per shareThe offer represents a 63% premium compared to the last closing price and 91% above the 60-day volume-weighted average price (as of September 9)Closing is expected in the fourth quarter, subject to customary approvals, after which Vimeo will cease to be listed.

Terms and schedule of the agreement

Vimeo's board of directors unanimously approved the project after a strategic alternatives review processThe company maintains that the transaction provides certainty and accelerates its roadmap by integrating under the Bending Spoons umbrella.

In the transaction, Allen & Company LLC acts as financial advisor to Vimeo, while Bending Spoons has JP Morgan, Wells Fargo, and BNP as advisors. Closing of the deal is expected in the fourth quarter, subject to closing conditions and regulatory and shareholder approvals.

Once the purchase is completed, Vimeo's capital will cease to be traded on public marketsDuring the transition period, the company will not hold its Q3 earnings conference call, although it will publish written financial information to fulfill its obligations.

To bolster its acquisition plan, Bending Spoons recently raised more than 500 million euros in private equity debt and, in a round last year, it was valued at around 2.550 millionIn recent months, there has been speculation about its interest in Vimeo and the possibility of a future IPO in the US.

Who is Bending Spoons and what can change?

Bending Spoons, founded in 2013 and based in Milan, is characterized by Acquire digital products and platforms to relaunch them with a focus on efficiency, which often involves significant reorganizations. Analysts such as Paolo Pescatore anticipate cost-saving measures and greater emphasis on monetization after closing.

The group has been incorporating brands such as Evernote, Remini, WeTransfer, Meetup, komoot, Issuu, StreamYard and Splice. Its services reach more than 300 million monthly users and exceed the 10 million paying customers, according to data shared by the company itself.

Precedents show that after some purchases, adjustments came: in Evernote, closed operations in the US and Chile, the center of activity was moved to Europe and features of the free plan were limited; at WeTransfer, a few weeks after the acquisition, there was 75% of the workforce cuts and later the use of the free version was restricted.

For Vimeo, the public roadmap aims to expand its product lines —Self-Serve, OTT/Vimeo Streaming and Vimeo Enterprise—, strengthen performance and reliability and boost new features (including AI capabilities) responsiblyLuca Ferrari, CEO and co-founder of Bending Spoons, has reiterated the intention of Invest ambitiously in the US and other priority markets and to operate the company with a long-term vision.

In parallel, Vimeo is undergoing a complex journey: was born in 2004, became independent from IAC in 2021, experienced the push for remote work and, since then, has lost nearly 90% of its stock market valueOn the labor front, he recently announced a cut of nearly 10% of its workforce, following layoffs of 11% in 2023 and 6% in 2022.

If everything goes according to plan, Vimeo will become part of a growing technology conglomerate with resources to boost its business video and OTT streaming, while logical doubts persist about the scope of possible internal adjustments and commercial emphasisThe combination of share price, closing schedule, and financial and advisory support outlines a significant outcome for the professional video ecosystem.