Vimeo Acquires AI Video Startups Wibbitz & Wirewax

Vimeo Expands Capabilities with Strategic Acquisitions

Vimeo, having recently become an independent entity following its separation from IAC, has announced the acquisition of two companies. These purchases are designed to enhance the platform’s offerings for businesses seeking to implement and manage comprehensive video strategies.

Acquisition of Wibbitz and Wirewax

The acquisitions include Wibbitz, a platform specializing in short-form, AI-driven video creation, and Wirewax, a company known for its technology enabling marketers to create interactive and “shoppable” video experiences. These additions aim to broaden Vimeo’s toolkit for its business clientele.

While the financial specifics of these deals remain undisclosed, Wibbitz, originally founded in Israel, previously secured approximately $30 million in funding. Investors included strategic partners like the Associated Press and Bertelsmann, alongside venture capital firms such as Horizons Ventures and Kima Ventures.

London-based Wirewax also attracted strategic investment from the BBC, in addition to Passion Capital and Plug and Play, raising around $7 million. Both companies boast a substantial roster of prominent clients.

Continued Operation and Integration Plans

Vimeo intends to maintain both Wibbitz and Wirewax as independent platforms, continuing to serve their existing customer bases. These include major corporations such as Walmart, Disney, Google, Nike, HubSpot, Bloomberg, Condé Nast, and Harvard University.

Furthermore, Vimeo plans to integrate the functionalities of these acquisitions into its core video creation dashboard. This will allow the company to offer a more comprehensive suite of tools to both current and new customers.

Addressing the Growing Demand for Video

According to Anjali Sud, Vimeo’s CEO, these acquisitions are a direct response to the increasing demand for video content from enterprise clients. The goal is to provide more accessible creative tools, empowering businesses to capitalize on the surge in video consumption.

The COVID-19 pandemic significantly accelerated this trend, with individuals spending more time online and driving increased demand for video content across various sectors.

A Shift Towards Proactive Video Strategies

Sud notes a shift in how companies approach video, moving from reactive to proactive strategies. Employees are increasingly requesting more robust video tools for internal collaboration, marketing campaigns, and product development.

Vimeo aims to position itself as a consolidator within the video industry, acquiring smaller companies with specialized features to create a unified, all-in-one professional video solution. The company believes that every organization can benefit from increased video utilization.

Previous Acquisitions and Ongoing Strategy

This strategy of acquisition is not new to Vimeo. Previous purchases include Livestream, which now supports town halls and virtual events, and Magisto, another short-form video creation tool.

Wirewax: Interactive Video Functionality

Wirewax will introduce enhanced interactive video capabilities to Vimeo, featuring a user-friendly drag-and-drop interface. This technology will be particularly valuable for e-commerce, enabling the creation of “shoppable” videos with direct links to products.

Applications extend beyond retail, encompassing technical demonstrations, educational resources, and internal employee training, with links to quizzes and further information.

Wibbitz: Streamlined Video Creation

Wibbitz focuses on simplifying video creation for marketing, internal communications, and media teams. It offers tools for managing large volumes of video content while maintaining brand consistency.

While Wibbitz previously offered AI-powered text-to-video conversion, this is no longer its primary focus. Vimeo intends to integrate Wibbitz’s AI technology into its existing products, leveraging capabilities acquired through Magisto.

Industry Leaders Express Enthusiasm

Steve Callanan, CEO of Wirewax, stated that the combination with Vimeo will empower millions of users with next-generation interactive video technology. He emphasized the potential to drive better business outcomes through engaging video experiences.

Zohar Dayan, CEO of Wibbitz, highlighted the shared goal of simplifying video creation for all employees. He expressed excitement about joining Vimeo’s platform to accelerate the video transformation within enterprises.

Vimeo’s Performance and Future Outlook

Despite these strategic moves, Vimeo has experienced a mixed financial year. The company’s initial public offering in May saw its stock price decline, and its current valuation is significantly lower than its debut. Market skepticism stems from the increasingly competitive landscape of video services.

However, the overall video market continues to thrive, with record growth across various platforms, including Netflix, TikTok, YouTube, and Zoom.

Revenue Growth and User Base

Vimeo has benefited from this industry-wide growth, reporting quarterly revenues of $100 million in Q3. The company boasts “hundreds of millions” of free users and 1.6 million paying subscribers.

Expanding Customer Base

Since its shift to a B2B focus four years ago, Vimeo’s customer base has diversified to include SMBs, startups, and over 6,000 large enterprises, such as Starbucks, Amazon, and Spotify. Enterprise revenues grew by 60% in the last quarter.

Looking ahead, Anjali Sud emphasizes Vimeo’s long-term vision, focusing on decades of innovation and growth within the video industry.