Vimeo, the video sharing platform acquires Israeli startup Magisto. The amount of the acquisition has yet to be disclosed, but according to market estimates, it is worth hundreds of millions of dollars. The deal is expected to be implemented by the end of the second quarter.
The two companies recently cooperated, which apparently contributed to the maturity of the deal.
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Founded in 2010 by Oren Boiman and Alex Rav-Acha Magisto focuses on providing tools to create and edit short-form videos, not just editing but sourcing of music, stock photos and other elements as part of the mix.
The company currently has more than 100 million users and employs 75 people worldwide, most of them in Israel. Following the acquisition, the company will become Vimeo’s development center in Israel.
Magisto has developed an automatic and simple editing application for home-made videos on a smartphone and can save the need for expensive professional tools. It also allows the user to define which are the most important subjects in each frame, allowing the software to highlight them in any edited version.
The company’s technology is also used by businesses that want to produce their own advertising and advertising videos quickly and at a low cost while maintaining professional quality. Vimeo, the purchaser, competes on streaming platforms as a channel and is home to about 90 million creators from 150 countries.
The Israeli company was originally aimed at the private market, but over the years it has become more focused on the organizational market.
The videos that its app produces can be shared across various network platforms easily and quickly. The companies explained that they plan to develop a completely new video format and embed it on the Vimeo platform, with users of Magisto able to access Vimeo’s development and editing tools.
Oren Boiman, founder and CEO of Magisto, adds, “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.”Vimeo belongs to the IAC Corporation, which also owns Match Group, which has popular dating applications as a pickup truck. Despite a 28% increase in revenue to $ 44 million in the last quarter of 2018 over the same period a year earlier, Vimeo still recorded a loss of $ 10 million.
It is clear that the acquisition is intended to strengthen its positioning in the business market in order to increase its revenues. Magisto’s technology, based on artificial intelligence tools, provides an added value to the service line that Wimao now offers.