Vimeo is acquiring Magisto , a video-creation service, aiming to bulk up its video tool set and expand its customer base.
Magisto, founded in 2009, claims to have over 100 million users. The company had raised $22.5 million from investors including Qualcomm Ventures, SanDisk Ventures, and Horizons Ventures, according to Crunchbase.
Terms of the deal weren’t disclosed. Magisto has 75 employees with offices at its headquarters in Menlo Park, Calif., and offices in Israel. IAC-owned Vimeo expects the deal to close by the end of the second quarter.
According to the companies, Magisto enables simple and intuitive short-form video creation for any platform. The combination of Magisto’s professional video creation capabilities with Vimeo’s suite of video hosting, distribution and monetization tools will extend Vimeo’s position as the industry’s most complete video-hosting solution, according to Anjali Sud, CEO of Vimeo.
“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,” Sud said in announcing the deal. “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.”
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Following the acquisition, Vimeo said it will work with Magisto to develop entirely new short-form video creation capabilities for the Vimeo platform. Magisto users will also be able to access Vimeo’s full suite of workflow tools, so they can deploy their videos across platforms with a click of a button and measure performance all in one place.
Oren Boiman, founder and CEO of Magisto, added, “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. 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.
LINK ORIGINAL: Variety