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.
