Vimeo has acquired US and Israel-based short-form video creation company, Magisto, to bulk up its professional video services offering.
Vimeo said it will work with Magisto to develop new short-form video creation capabilities for its platform, combining these with its existing suite of video hosting, distribution and monetisation tools.
Magisto offers an AI-powered smart video editor. Users can upload videos and photos, choose a video editing style and soundtrack from the Magisto library and the video maker will analyse and edit the video.
“Social media has sparked an insatiable demand for video,” said Anjali Sud, CEO of Vimeo. “But we’ve found that most small businesses don’t have the tools, resources or expertise to meet this increased demand.”
“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.”
Magisto said in a blog post that its apps and service will continue to operate as usual, but by combining forces with Vimeo it will offer its users a more valuable, all-in-one video marketing solution that goes beyond creation to include collaboration, hosting and management, distribution, analytics, monetisation and live streaming.
Magisto founder and CEO, Oren Boiman, said: “We’re thrilled to join Vimeo’s industry-leading platform, and to power their vision to make professional quality video creation accessible to all.”
Magisto claims more than 100 million users and the company has over 75 employees. Vimeo meanwhile is home to more than 90 million video creators in over 150 countries.
Terms of the deal were not disclosed, but Israeli business publication Globes reported that Vimeo is paying an estimated US$200 million, citing sources close to the deal. The transaction is expected to close by the second quarter.