Vimeo’s, Final

Vimeo’s Final Bow: Acquisition Closes Tumultuous Public Chapter

04.11.2025 - 10:07:03

Rescue Package Arrives with Substantial Premium

The curtain is falling on Vimeo's stock market journey. The video software platform faces its concluding act following disappointing quarterly earnings and an impending acquisition by Italian tech firm Bending Spoons. While shareholders prepare for departure from public markets, questions linger about the ultimate valuation of this exit.

Salvation emerges from Milan as Bending Spoons steps in to acquire Vimeo in a transaction valued at $1.38 billion. Shareholders will receive $7.85 per share, representing a substantial 91% premium over the stock's 60-day average price preceding the acquisition announcement. This deal culminates a dramatic valuation journey:

  • Current market capitalization: $1.3 billion
  • Peak valuation during 2021: Approximately $9 billion
  • Acquisition valuation: $1.38 billion

The descent from billion-dollar high-flyer to acquisition target illustrates a stark reversal of fortune for the video platform.

Should investors sell immediately? Or is it worth buying Vimeo?

Quarterly Performance Disappoints

Vimeo's third-quarter 2025 financial results delivered sobering news. Instead of anticipated profits, the company reported a net loss of $2.34 million, contrasting sharply with the $9.28 million net income achieved during the same period last year. Revenue reached $105.76 million, slightly below market expectations. The adjusted earnings per share came in at -$0.01, significantly missing the consensus estimate of +$0.03.

Waning Optimism Amid Acquisition Timeline

Just one quarter earlier, Vimeo appeared to be staging a turnaround, having raised its full-year 2025 EBITDA guidance to $35 million. However, the recent financial performance and impending privatization failed to impress market observers, with several analysts downgrading their recommendations from "Buy" to "Hold."

For remaining investors, the acquisition process moves toward conclusion, with expectations for finalization during the fourth quarter. Following necessary approvals from shareholders and regulatory authorities, Vimeo will delist from public exchanges. The latest earnings report provides a final glimpse into the company's operational health before it begins its next chapter under private ownership.

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