Business acquisition: DeviantArt and Wix – Research Snipers

Business acquisition: DeviantArt and Wix

DeviantArt

The offices of website-designer firm Wix.com are shown in Tel Aviv, Israel July 4, 2016. REUTERS/Baz Ratner/File Photo

Wix.com has acquired DeviantArt. The acquisition comes from insight that the website builder and administration service can put on service more tools to its user base.  DeviantArt is an online platform for artists, designers and other art enthusiasts. Mainly common among the design and art community, the website has more than 325 million pieces of original artwork. The artists span across the world and use the platform as their portfolio. It has around 40 million registered. Wix acquired it for $36 million in cash and this includes $3 million of assumed liabilities.

The thing about DeviantArt is that there is no data available on it prior valuation. The business expanded through word of mouth rather than paid/unpaid investment in advertisement and marketing. It was originally founded in 2000 and managed to raise $13.5 million from backers such as Autodesk, DivX and other individual investor lot. The company grew but through very untraditional approaches. The transaction has ended leading to full acquisition. While, Wix will leave DeviantArt website alone there are solid suggestions that it will use it to boost its own business. This shall be prominent in a couple of ways over the next few months.

Now, first thing that it will do is make DeviantArt users at a more preferable position to use Wix’s web design tools. This will lead to the creation of more interactive online presences. The tools range from commerce to design and many more for running online businesses. Wix is also expanding its mobile commerce environment. It acquired Flok last month. Flok is a service that provides mobile CRM and loyalty services. Secondly, Wix plans on giving the website users access to DeviantArt’s repository of art and creative community. This can lead to more ways the users can use their work in building websites.

“Over its 16-year history, DeviantArt has built an impressive online community that is incredibly loyal, highly engaged and regularly produces stunning art and design,” said Avishai Abrahami, Co-founder and CEO of Wix, in a statement. “The DeviantArt community is talented and robust and hungry for additional product expertise. We understand their passion, share their creative vision and are excited to offer the power of the Wix platform to their millions of artists.”

What does DeviantArt get out of this?

The answer is a new investment in developing its desktop and mobile apps. The desktop itself is based on the pared-down interface using simplistic reminiscent of the 2000 time. Angelo Sotira who is the co-founder and CEO of the platform will join Wix management team. Other employees will follow. The operation will still hold its ground  from LA.

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“We founded DeviantArt to enable the creative spirit in everyone, creating a platform dedicated to the vision and talent of the community which could be shared with the world,” said Sotira, in a statement. “This combined effort with Wix creates new opportunities for innovation never before seen on the Internet and an amazing super-charged offering to our community members. We look forward to being part of the Wix team, and we are humbled by the respect and love they have shown to our community.”

Image via Reuters