News has just come out that Vimeo has acquired Magisto, a 100 million user startup focused on creating and editing short videos.
This is a huge purchase for Vimeo. To put it into context, Vimeo in total has 90 million users, compared to Magisto’s 100 million users. So far the terms of the deal haven’t been disclosed yet. Israeli publication Globes is reporting it’s a $200 million deal. However, TechCrunch talked to a source that didn’t deny the figure but did say the deal’s final price won’t be settled on until the deal is officially closed. That should be happening at the end of Q2, according to Vimeo.
A little more about Magisto
Magisto is a startup that was originally founded in Israel. The platform does focus on creating and editing short videos. However, they’re also a source of music, stock photos and other things you need for editing. Since 2010, Magisto has raised around $23 million thanks to both financial and strategic investors — which includes Magma Venture Partners, Qualcomm and SanDisk. According to PitchBook, Magisto hasn’t raised any money since 2014.
Currently, Magisto has 75 employees stationed in both Israel and California. Once the deal is settled, they’re all reportedly coming over.
Vimeo integration into Magisto
As part of the deal, Vimeo says Magisto will be getting Vimeo integration. So users will now be able to publish and monetize videos they make using Magisto.
“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,” said Oren Boiman, founder and CEO of Magisto. “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.”
Image courtesy Vimeo