Vimeo Buys Video Creation Company Magisto for an Undisclosed Sum
Video sharing site Vimeo announced today it's in the process of acquiring video editing company Magisto. Neither company disclosed the terms of the deal, but unnamed sources put the price at $200 million. Vimeo's reasoning is that small companies that would like to do more with video lack the resources or budget to invest in video creation, so they need simple tools to accelerate the process. Magisto has created an artificial intelligence-powered editing system that does much of the work, promising results in minutes.
The deal should close by the end of the second quarter. Once it does, Vimeo and Magisto will create new video editing tools that will live on the Vimeo platform and tie into Vimeo's existing publishing and analytics tools, as well as its video stock marketplace. The new editing tools will be targeted to businesses and individuals.
"What we hear, again and again, is that businesses don’t feel equipped with the tools to create video at the speed, volume, and quality that their audiences and customers demand," wrote Vimeo CEO Anjali Sud in a blog post. "And that’s a problem we intend to solve."
Vimeo is based in New York City. Magisto has offices in California and Israel, with over 75 employees total.
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