Vimeo acquires video creation service Magisto for reported $200M

Vimeo announced on Monday that it is acquiring video creation service Magisto, which has more than 100 million users, for a reported $200 million.The companies did not disclose financial terms, but the figure comes from sources cited by Globes. The deal is expected to close by the end of the second quarter. Magisto has 75 employees across its offices in California and Israel.Vimeo intends to round out its video software-as-a-service, which includes a suite of video hosting, distribution and monetization tools, by integrating Magisto’s video creation tools. The deal will give Magisto users access to Vimeo’s full suite of workflow toots. Vimeo and Magisto plan to develop new short-form video creation capabilities for the Vimeo platform. "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," said Anjali Sud, CEO of Vimeo, in a statement. "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."