Video platform Vimeo just got a $1.38 billion lifeline from Bending Spoons, the Italian mobile app powerhouse behind Evernote and WeTransfer. The all-cash acquisition, announced Wednesday, marks one of Europe's biggest tech deals this year and signals a dramatic shift for the struggling video platform that's lost 90% of its value since spinning off from IAC in 2021.
Vimeo is about to get very Italian. The video platform that once positioned itself as YouTube's artsy alternative has agreed to be acquired by Bending Spoons for $1.38 billion, the companies announced Wednesday. It's a dramatic rescue for a company that's been hemorrhaging value since going public.
The all-cash deal comes after months of speculation about Vimeo's future. Bloomberg first reported Bending Spoons' interest back in March 2024, but negotiations clearly took time as Vimeo's board weighed their options. The transaction is expected to close in Q4 2025, pending regulatory approval.
"At Bending Spoons, we acquire companies with the expectation of owning and operating them indefinitely," CEO Luca Ferrari said in the official announcement. "We're determined to make ambitious investments in the US and other priority markets."
But Vimeo employees might want to update their resumes. Bending Spoons has developed a reputation for aggressive cost-cutting after acquisitions. When the Italian company bought Evernote in 2022, it quickly laid off most US and Chilean staff, moving operations to Europe. The note-taking app then killed its Linux version and severely restricted its free tier.
The pattern repeated with WeTransfer. Just weeks after Bending Spoons acquired the file-sharing service in July 2024, 75% of the workforce got pink slips. By December, WeTransfer capped free users at 10 transfers per month - a dramatic reduction from its previous unlimited model.
For Vimeo, the acquisition represents both salvation and uncertainty. The platform has struggled to find its identity in a world dominated by YouTube, TikTok, and emerging AI-powered video tools. Since spinning off from IAC in 2021 with high hopes and a $5.7 billion valuation, Vimeo has watched its market cap evaporate as it failed to capture significant market share in either consumer or enterprise video.
The numbers tell a brutal story. Vimeo's stock peaked around $63 per share in early 2021 but has since cratered to single digits. The company's attempts to pivot between creator tools, enterprise solutions, and live streaming never gained the traction investors hoped for. Revenue growth stagnated while competition intensified from both established players and nimble startups.
"We are excited about this partnership, which we believe will unlock even greater focus for our team and customers," Vimeo CEO Philip Moyer said, putting a positive spin on what amounts to a distressed sale. The company will be delisted once the deal closes, ending its brief stint as a public company.
Bending Spoons, meanwhile, continues its acquisition spree across the digital landscape. The Milan-based company has built a portfolio of productivity and creativity apps serving hundreds of millions of users globally. Its aggressive approach to streamlining operations - some would say gutting - acquired companies has proven profitable, even if it's painful for employees and users.
The video platform space has become increasingly consolidated as smaller players struggle against tech giants with deeper pockets and broader ecosystems. Adobe's dominance in creative software, Google's YouTube monopoly, and Microsoft's Teams integration have left independent video companies fighting for scraps.
What remains to be seen is whether Bending Spoons can unlock value from Vimeo that previous management couldn't. The Italian company's track record suggests dramatic changes are coming - likely fewer employees, reduced features for free users, and a laser focus on profitable segments. For Vimeo's creative community, which has long valued the platform's ad-free, high-quality approach, the transition could be jarring.
This acquisition signals the end of an era for independent video platforms trying to compete with tech giants. While Bending Spoons promises investment and growth, its history suggests Vimeo users should prepare for significant changes. The deal reflects broader consolidation pressures in digital media, where only the biggest players or the most efficiently run companies can survive. For Vimeo's creative community and enterprise customers, the next year will determine whether this Italian intervention saves their platform or fundamentally alters what made it special.
