Bending Spoons Acquires Vimeo for $1.38 Billion: Strategic Move to Revitalize Video Platform and Expand OTT Market Presence

Bending Spoons, an Italian technology conglomerate known for acquiring and revitalizing tech companies, is acquiring Vimeo, the US-based online video platform, for approximately $1.38 billion in an all-cash deal. This acquisition will take Vimeo private, with shareholders receiving $7.85 per share, representing a premium of around 63% to 91% over recent stock prices. The transaction is expected to close by the end of 2025's fourth quarter following regulatory and shareholder approvals.reuters+2

Acquisition Details

• The acquisition price for Vimeo is $1.38 billion in cash.

• Vimeo shareholders receive $7.85 per share.

• The deal includes no "go-shop" provision and a 2.9% breakup fee if terminated.

• The transaction was unanimously approved by Vimeo's board of directors.

• Vimeo will be delisted from public exchanges after closing, transitioning to private ownership.investing+2

Strategic Intent and Business Focus

• Bending Spoons plans to expand Vimeo’s offerings in over-the-top (OTT) streaming and enterprise solutions.

• They aim to enhance Vimeo’s self-service capabilities and develop AI-driven features.

• The acquisition aligns with Bending Spoons’ strategy of optimizing platforms by applying technology and operational improvements.

• Vimeo had struggled post-pandemic to sustain increased usage and differentiate itself in a competitive video platform market dominated by YouTube, TikTok, and other specialized competitors.tech+3

Financial and Market Context

• Bending Spoons paid a premium reflecting confidence in Vimeo’s enterprise growth and AI potential despite challenges.

• The deal values Vimeo at approximately 39x EBITDA, indicating a significant strategic bet rather than valuation based purely on current earnings.

• Vimeo has about $303 million in cash reserves and no debt, providing financial stability.

• Vimeo’s core business has seen slow or stagnant growth with declining self-serve subscriptions, increasing the risk Bending Spoons faces in turning around the platform.ainvest+1

Bending Spoons’ Acquisition Track Record

• Bending Spoons, headquartered in Milan, has acquired other notable companies including WeTransfer, Evernote, MeetUp, and Brightcove.

• The company has a track record of making operational changes after acquisitions, sometimes including layoffs and restructuring.

• There are mixed views about Bending Spoons’ approach; while it aims to grow and optimize acquired companies, it has also faced criticism for cutting staff and restricting features in past acquisitions such as Evernote.techcrunch+3

Analysis Summary

The acquisition of Vimeo by Bending Spoons marks one of the largest deals in Bending Spoons’ history and reflects a bold strategic bet on Vimeo’s future potential in the enterprise video streaming market and advanced AI features. The premium valuation signals strong confidence in Vimeo’s transformation under private ownership but also embodies risk given Vimeo's recent operational challenges and competitive pressures. Bending Spoons’ history of aggressive operational changes suggests significant restructuring ahead as the company seeks to unlock value and scale Vimeo’s offerings in key markets.reuters+2

This transaction will be pivotal in reshaping Vimeo’s trajectory as it moves away from public market pressures towards a focused private growth strategy under Bending Spoons’ stewardship. The deal is expected to finalize in late 2025.bloomberg+2