Video platform Vimeo has acquired short-form video start-up Magisto for a reported $200m as it looks to cement its place on the booming social media video sector amongst small businesses and individuals who publish video.
According to Tech Crunch, the deal, which is Vimeo’s fifth acquisition, will be concluded in the second quarter of 2019 and will mean all of Magisto’s 75 staff, which are based in Israel and California will be soon working from Vimeo’s New York office.
“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,” said Anjali Sud, CEO of Vimeo in a statement.
He added: “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.”
Oren Boiman, founder and CEO of Magisto commented “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.”