European mobile app developer Bending Spoons has officially agreed to acquire video platform Vimeo in an all-cash transaction valued at approximately $1.38 billion. The definitive agreement, announced Wednesday, marks a significant shift for the independent, publicly traded video company.
Timeline and Transition
The deal is expected to finalize in the fourth quarter of 2025, pending regulatory approvals and standard closing conditions. Once the acquisition is complete, Vimeo will be delisted from public stock exchanges. This move follows months of speculation, as Bending Spoons had expressed interest in a takeover as early as March 2024.
Strategic Vision for Vimeo
Luca Ferrari, CEO and co-founder of Bending Spoons, stated that his firm intends to operate Vimeo indefinitely. “We’re determined to make ambitious investments in the US and other priority markets across both creator and enterprise offerings,” Ferrari said. He emphasized a focus on service reliability, advanced features, and the continued rollout of AI-enabled tools.
Vimeo CEO Philip Moyer echoed this optimism, noting that the partnership aims to bolster the company’s core segments, including Self-Serve, OTT/Vimeo Streaming, and Vimeo Enterprise. “We are excited about this partnership, which we believe will unlock even greater focus for our team and customers,” Moyer added.
A Track Record of Aggressive Restructuring
The acquisition has sparked industry scrutiny due to Bending Spoons’ established history of post-acquisition restructuring. The firm is known for aggressive cost-cutting measures, including significant staff layoffs and the reduction of free-tier features.
- Evernote: After the 2022 acquisition, the company moved operations to Europe, laid off the majority of its U.S. and Chile-based staff, discontinued legacy app versions, and severely restricted the free tier.
- WeTransfer: Following its acquisition in July 2024, Bending Spoons laid off 75% of the staff and subsequently limited free users to 10 transfers per month.
The Road to Acquisition
Vimeo, founded in 2004, spun off from IAC in 2021 to become an independent entity. However, the company has struggled in the public markets, losing nearly 90% of its market value since its debut. According to Bloomberg, this decline in valuation was a primary factor in leadership’s decision to explore strategic options, ultimately leading to the agreement with Bending Spoons.