Vimeo — owned by IAC/InterActiveCorp (NASDAQ:IAC) — has agreed to acquire video-sharing site Livestream.
The move will help expand Vimeo’s video empire as the company looks to reach the heights of competitors YouTube and Hulu with the acquisition. Livestream hosts more than 10 million events for more than 10,000 paying subscribers such as Dow Jones, Philadelphia Eagles and Spotify.
Roughly 50 million viewers tune in to watch Livestream’s events every months. Vimeo’s acquisition makes sense as the company recently abandoned plans to roll out a subscription video-on-demand business earlier in the year.
Instead, the company will use Livestream’s capabilities to launch its own live streaming product, Vimeo Live. The move will allow Vimeo to record, edit, stream and archive live events, plus it will be able to host, distribute and generate revenue from its videos.
The terms of the deal have not been disclosed so far, but it is slated to be completed early in the fourth quarter of the current year. Vimeo told TechCrunch that this is its largest acquisition as of yet.
In addition to now hosting live events, the move will bolster Vimeo’s core business of selling tools and services to professional and semi-professional video creators.
Vimeo acquired its VHX unit last year, allowing companies to launch their own video streaming services to make their films, shows and web series available for a profit through its platforms.
The service is used by the Foo Fighters, NPR’s This American Life, Comedy Central and several others.
IAC shares fell 0.6% Tuesday.