Vimeo stock to be acquired by Bending Spoons for $7.85 per share

Investing.com - Vimeo (NASDAQ:VMEO) has agreed to be acquired by private company Bending Spoons in an all-cash transaction valued at $1.38 billion, or $7.85 per share, representing a 91% premium over the company’s 60-day volume-weighted average share price as of September 9, 2025. The stock has already shown strong momentum, gaining nearly 15% in the past week, with InvestingPro data indicating the stock is currently in overbought territory.

The transaction, which was unanimously approved by Vimeo’s Board of Directors, is expected to close in the fourth quarter of 2025. The deal includes no "go shop" provision and carries a break-up fee of 2.9% to be paid by Vimeo if the agreement is terminated. The company’s strong financial position, with a healthy current ratio of 1.59 and more cash than debt on its balance sheet, supports the transaction’s stability.

Truist Securities has reiterated a Buy rating on Vimeo with an $8.00 price target following the announcement. The firm notes the take-out price implies a valuation of approximately 3.3x and 3.1x EV/Sales on their FY25 and FY26 estimates.

The acquisition values Vimeo at roughly 39x and 31x EV/AEBITDA for FY25 and FY26, respectively, based on Truist’s projections of 8% and 10% AEBITDA margins for those years.

Bending Spoons had previously expressed interest in acquiring Vimeo, with Bloomberg reporting in March 2024 that the company had spoken to banks about financing a potential deal.

In other recent news, Vimeo, Inc. reported its second-quarter 2025 earnings, revealing an impressive earnings per share (EPS) of $0.04, surpassing the expected $0.01. Despite this 300% EPS surprise, the company experienced a slight revenue shortfall, posting $104.7 million compared to the anticipated $104.87 million. Additionally, Vimeo announced a global workforce reduction of nearly 10 percent, a move intended to enhance focus and efficiency within the company. The completion of this workforce reduction is anticipated by the end of the fourth quarter of 2025.

In another development, Vimeo extended the exit date of its Chief Financial Officer, Gillian Munson, to September 30, 2025. Munson will remain in her role through the end of the third quarter to support ongoing operations and assist in the search for her successor. During this transition period, her base salary will be $100,000 per month. These changes reflect Vimeo’s efforts to streamline operations and ensure a smooth leadership transition.

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