IAC’s video subsidiary company Vimeo announced it is acquiring Magisto — which is a video creation service with more than 100 million users. The terms of the deal were undisclosed, but Crunchbase reported that it was for $200 million.
What does Magisto do? The company enables simple and intuitive short-form video creation for any medium. And the combination of Magisto’s professional video creation features with Vimeo’s hosting suite and monetization tools will make Vimeo a complete video SaaS solution.
“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 Vimeo CEO Anjali Sud 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.”
Once the acquisition completes, Vimeo and Magisto are going to work together to develop new short-form video creation capabilities for the Vimeo platform. And the companies have a goal of helping individuals and business tell their stories with professionalism and ease.
Plus Magisto users will also be able to seamlessly access Vimeo’s full suite of workflow tools. This way they can deploy their videos across platforms quickly and measure the performance all in one place. Founded by CEO Oren Boiman and CTO Alex Rav Acha, Magisto has 75 employees across its offices. Prior the acquisition, Magisto has raised $23 million in venture funding from investors like SanDisk Ventures and Qualcomm Ventures.
“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,” added Magisto founder and CEO Oren Boiman. “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.”
