TLDR
- Vimeo (NASDAQ: VMEO) shares jumped 60.5% after announcing acquisition by Bending Spoons for $1.38 billion
- Shareholders will receive $7.85 per share in all-cash deal, representing 91% premium over 60-day average price
- Transaction received unanimous board approval and expected to close in fourth quarter 2025
- Deal will take Vimeo private, removing shares from public trading
- Acquisition aims to accelerate Vimeo’s strategic roadmap with planned investments in US and key markets
Vimeo stock rocketed Tuesday morning as investors celebrated news of a lucrative buyout. The video software platform will be acquired by technology company Bending Spoons in an all-cash transaction.
The deal values Vimeo at approximately $1.38 billion. Under the agreement terms, shareholders will receive $7.85 in cash for each share they own.
This buyout price delivers a hefty 91% premium over Vimeo’s 60-day volume-weighted average share price. The transaction received unanimous approval from Vimeo’s Board of Directors.
Shares surged 60.5% in morning trading following the announcement. The stock hit a new 52-week high of $7.74 per share.
Deal Timeline and Structure
The acquisition is expected to close in the fourth quarter of 2025. After completion, Vimeo will become a privately held company.
The video platform’s shares will no longer trade on public markets once the deal finalizes. Bending Spoons plans to accelerate Vimeo’s strategic roadmap through the acquisition.
The acquiring company intends to make substantial investments in the US and other key markets. This funding could help expand Vimeo’s reach and capabilities.
Vimeo’s stock has shown considerable volatility throughout the past year. The company has recorded 15 moves greater than 5% during this period.
However, today’s massive jump stands out even for this volatile stock. The market clearly views this acquisition news as a game-changer for shareholders.
Recent Performance Context
Prior to today’s surge, Vimeo had gained 19.4% since the beginning of 2025. The stock’s previous major move occurred 19 days ago with a 5.8% gain.
That earlier rally came after Federal Reserve Chair Jerome Powell delivered dovish remarks at Jackson Hole. His comments suggested potential interest rate cuts, boosting market confidence.
The video platform serves businesses looking to create high-quality video experiences. Its content receives billions of views monthly from a diverse user base.
Vimeo’s videos range from creative storytelling to corporate communications. The platform caters to both individual creators and large enterprises.
The company has been working to expand its enterprise segment through AI innovations. This focus has shown promising growth prospects in recent earnings calls.
Early Vimeo investors haven’t fared as well over the longer term. Those who bought $1,000 worth of shares at the May 2021 IPO would now hold an investment worth $140.64.
The current acquisition price of $7.85 per share provides these early investors with a clear exit opportunity. Bending Spoons’ offer represents the best outcome for shareholders who have endured years of declining value.
