Italian tech company Bending Spoons is purchasing Brightcove, the cloud platform for managing and monetizing video content, in a $233 million all-cash deal that values it at $4.45 per share or 90% above the 60-day average. Founded in Boston in 2004, Brightcove supplies tools for the creation, hosting, streaming, and marketing of videos to many of the biggest brands globally, including Marriott Hotels, Ford, and Johnson & Johnson.
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Although Brightcove went public on Nasdaq in 2012 at $11 per share, it’s been a struggle for a while. Its latest quarterly report showed a 2% decline in revenue coupled with a 22% increase in net losses than the previous year. Meanwhile, the company’s market cap had hit a new low of $72 million earlier this year but returned to $143 million, which is still not convincing enough.
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Brightcove’s board chair Diane Hessan says this deal presents an optimal way to maximize the value of the company while giving the shareholders instant cash returns. For Bending Spoons, it is its first acquisition of a publicly traded company and marks its entrance into the enterprise SaaS market. Bending Spoons is known for its former acquisitions, such as Evernote, WeTransfer, and Filmic. The company has gained a reputation for massive restructuring efforts, with most of them involving workforce layoffs. After acquiring Evernote in 2022, the company laid off 129 employees, and the same thing happened after the purchase of WeTransfer and Meetup.
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Despite these trends, Bending Spoons CEO Luca Ferrari emphasized the company’s commitment to ensuring Brightcove’s long-term success. He highlighted Brightcove as a respected name in streaming technology and expressed enthusiasm for building on the platform’s achievements to secure its future growth.
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The transaction is expected to close in the first half of 2025, pending regulatory and shareholder approvals.
