Vimeo, the video platform, has just acquired Magisto, which provides short-form videos for a sum of $200 million. Magisto is an online mobile and web app that allows users to edit their videos. It is aimed both at professionals and consumers.
The acquisition could thus provide a gateway for Vimeo to enter the social media video market.
Magisto currently has 75 members of staff, all of whom will join Vimeo’s New York office, according to TechCrunch.
Anjali Sud, CEO of Vimeo, pointed out that social media had created an “insatiable demand for video” with many audiences expecting quality “video content from every business, regardless of size or budget.”
“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,” Sud added.
Vimeo has plans to develop new tools with Magisto, but will also working on an integration of Vimeo for the Magisto app.
“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,” explained 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.”
The deal marks Vimeo’s fifth acquisition and its first since 2017 when it acquired Livestream.