Vimeo Draws Interest From App Developer Bending Spoons

(Bloomberg) -- Bending Spoons SpA, one of Europe’s largest mobile app developers, is considering a potential acquisition of video hosting platform Vimeo Inc., according to people familiar with the matter.

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Milan-based Bending Spoons has been speaking with banks about financing the potential transaction, the people said, asking not to be identified because the information is private.

Vimeo was spun off from Barry Diller’s IAC/InterActive Corp. in 2021. The company has lost 91% of its market value since it started trading.

Shares of Vimeo rose up to 9.2% before falling as much as 7.6% on Tuesday. They closed down 6% to $4.70 in New York trading, giving the company a market capitalization of about $790 million.

Deliberations are at an early stage and may not lead to a transaction, the people said. A representative for Bending Spoons declined to comment, while a spokesperson for Vimeo didn’t answer phone calls and emails seeking comment.

Bending Spoons bought note-taking app Evernote Corp. in 2022. In January, the group announced it’s acquiring community events platform Meetup.com. Bending Spoons is looking for more acquisition targets after a fundraising round valued the Italian company at about $2.6 billion, people familiar with the matter said last month.

READ MORE: Evernote to Sell Itself to Italian App Developer Bending Spoons

Bending Spoons’s products include Remini, a generative AI-powered photo editor, and a mobile video editing app called Splice. Its backers include former Google Chief Executive Officer Eric Schmidt, telecom billionaire Xavier Niel, tennis superstar Andre Agassi, actor Bradley Cooper and Colombian singer Maluma, according to its website.

The company recently raised about $155 million from a group of investors including Baillie Gifford, Neuberger Berman-backed NB Renaissance, as well as Durable Capital Partners, Bloomberg News has reported. Bending Spoons is forecasting $500 million of sales this year, up from $350 million in 2023.

--With assistance from Dinesh Nair, Ryan Gould, Michelle F. Davis, Crystal Tse and Antonia Mufarech.

(Updates with closing share price in fourth paragraph)

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