Vimeo beefs up short-form video fold with Magisto acquisition | Major Businesses | Business
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Online video hosting platform Vimeo has announced plans to acquire Magisto, a video creation service with over 100 million users, in a deal said to be worth in the region of $200 million.

vimeo originals screenshot 13 nov 2016Magisto short-form video creation; as such, the combination of Magisto's professional video creation capabilities will complement Vimeo's suite of video hosting, distribution and monetisation tools, the companies said.

Following the acquisition, Vimeo and Magisto will work together to develop new short-form video creation capabilities for the Vimeo platform, and Magisto users will also be able to access Vimeo's full suite of workflow tools.

"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. "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."

Oren Boiman, founder and CEO of Magisto, added: "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."

Magisto has over 75 employees with offices in California and Israel. The transaction is expected to close by the end of the second quarter.