Vimeo announced on Monday that it is acquiring video creation service Magisto, which has more than 100 million users, for a reported $200 million.
The companies did not disclose financial terms, but the figure comes from sources cited by Globes. The deal is expected to close by the end of the second quarter. Magisto has 75 employees across its offices in California and Israel.
Vimeo intends to round out its video software-as-a-service, which includes a suite of video hosting, distribution and monetization tools, by integrating Magisto’s video creation tools. The deal will give Magisto users access to Vimeo’s full suite of workflow toots. Vimeo and Magisto plan to develop new short-form video creation capabilities for the Vimeo platform.
"Social media has sparked an insatiable demand for video—audiences today expect high-quality video content from every business, regardless of size or budget. But we've found that most small businesses don't have the tools, resources or expertise to meet this increased demand," said Anjali Sud, CEO of Vimeo, in a statement. "Magisto's proprietary technology enables cutting edge mobile apps and AI-powered editing tools which, combined with Vimeo's scale and unmatched creator community, will empower more people to tell compelling stories through video."
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"Magisto guides entrepreneurs and small business owners through the video storytelling process, helping them use video effectively to grow their business and engage with audiences. We level the playing field so that any business can move fast and compete in today's video-first world. We're thrilled to join Vimeo's industry-leading platform, and to power their vision to make professional quality video creation accessible to all,” said Oren Boiman, founder and CEO of Magisto, in a statement.
The Magisto deal furthers strengthens Vimeo’s strategy toward offering tools and services for creators. The company had previously tried to dabble in streaming video services but recently realigned its focus to be entirely on the video creator community.
Vimeo previously made a significant acquisition in 2017 when it bought Livestream to support its livestreaming video service.
“With the launch of Vimeo Live and the addition of Livestream’s impressive team and innovative product suite, we can empower a diverse range of creators to produce beautiful live experiences with professionalism and ease. We are excited to take a leadership role in this large and growing market, and look forward to quickly making our mark,” said Sud in 2017.