Shares of Vimeo, a video platform, soared nearly 61% to $7.74 per share yesterday, September 10, after the company announced it would go private and be acquired by Italian conglomerate Bending Spoons, which owns Evernote and WeTransfer. As a public company, Vimeo faced increasing pressure to balance growth initiatives with short-term financial expectations, Noble Capital Markets argues.
Details
Vimeo shares jumped nearly 61% to $7.74 per share yesterday, September 10, the highest close since mid-2022.
Investors reacted to news that the video-hosting platform will be acquired by Italy’s Bending Spoons, owner of Evernote, WeTransfer, and Meetup. The all-cash deal values Vimeo at about $1.38 billion, or $7.85 per share, which is 91% above the stock’s 60-day volume-weighted average price before the September 9 announcement. On that date, the company’s stock closed at $4.81 per share, implying a 63% premium for shareholders.
“After a disciplined review of strategic alternatives, the Board unanimously determined that this all-cash transaction delivers compelling, certain value to Vimeo shareholders and positions the company to accelerate its strategic roadmap as part of Bending Spoons,” said Glenn H. Schiffman, chair of the board.
The acquisition has been approved by Vimeo’s directors and is expected to close in the fourth quarter, subject to shareholder and regulatory approval. Once completed, Vimeo will become a private company, and its shares will be delisted from the stock exchange. Bending Spoons CEO and cofounder Luca Ferrari said the firm plans “ambitious investments” in the U.S. and other priority markets, as well as in all core business areas.
What the deal means for Vimeo
For Vimeo, the acquisition represents "both a fresh chapter and a return to its roots," Noble writes. As a public company, it continues, Vimeo faced increasing pressure to balance growth initiatives with short-term financial expectations.
Transitioning to private ownership under Bending Spoons is expected to provide greater flexibility to invest in innovation across self-serve tools, enterprise services, and streaming solutions. The company is also expected by Noble to expand its portfolio of AI-enabled features, reflecting the growing role of AI in video production, editing, and distribution.
This is especially important given the rising strategic importance of video platforms. Businesses, creators, and enterprises increasingly rely on video for communication, marketing, and engagement, Noble points out.
Noble is confident that the acquisition delivers a substantial return for Vimeo shareholders at a time when Vimeo’s share price had struggled to reflect its long-term potential. The 91% premium on the stock’s recent trading average underscores the confidence Bending Spoons has in Vimeo’s future growth and the value of its established brand and customer base, Noble concludes
The AI translation of this story was reviewed by a human editor.
