Vimeo Agrees to be Acquired by Bending Spoons in an All-Cash Transaction Valuing Vimeo at Approximately $1.38 Billion

Vimeo has agreed to be acquired by Bending Spoons in an all-cash transaction that values Vimeo at approximately $1.38 billion, equating to $7.85 per share for Vimeo shareholders. The deal is expected to close in the fourth quarter of 2025. At Vimeo’s IPO in 2021, the company’s market cap was approximately $17.8 billion. A year later, Vimeos’ market cap fell under $2 billion and never got back above that number. More to come as more details emerge.

With any acquisition, one could argue that a company paid too much, and much of that is up to personal opinion. Looking at the numbers, Vimeo’s trailing-twelve-month revenue as of June 30 was $415, and they projected double-digit growth by the end of the year. Based on that, Vimeo is paying 3x projected 2025 revenue. However, at the end of Q2, Vimeo had $303 million in cash, so the multiple is more around 2.2x projected 2025 revenue.

I see some comparing Brightcove’s business, which Bending Spoons acquired, to Vimeo, but the companies are very different. At the end of Q3 2024, Brightcove had 1,923 premium customers, paying an average of $8,450 monthly. Outside of premium customers, Brightcove had 469 “starter” customers, paying $350 monthly. For comparison, at the end of Q2 2025, Vimeo’s self-serve plan had 1.5 million customers with an ARPU of $16.16 a month. Their “enterprise” customer count was 4,000 with an ARPU of $2,058 per month. The companies have a different set of customers. In the first 6 months of this year, Vimeo spent $60.9 million in R&D and $63 million in Sales and marketing expenses. General and admin expenses were another $37 million, along with over $14 million in stock-based compensation expenses. There are numerous cost savings that Bending Spoons will take advantage of to lower Vimeo’s costs, also at the expense of employee headcount, which is a business necessity as part of this deal.

A few weeks before the deal was announced, Vimeo laid off 10% of its workforce, which means Vimeo has now laid off 26% of its employees in the past three years, across two different CEOs. Like all vendors, Vimeo has been working hard to improve its balance sheet and net loss, and unfortunately, reducing headcount has been part of that process. In 2022, Vimeo’s net loss for the year was approximately $79.6 million. In 2023, their net loss decreased to $22 million, and in 2024, they reported a positive net income of $27 million. Their balance sheet continues to improve, but at the expense of jobs. Before the deal was announced, Vimeo’s stock was down 22% over the past year and 92% since its IPO.