(Bloomberg) -- Italian mobile-app developer Bending Spoons SpA has dropped its pursuit of video-hosting platform Vimeo Inc. after the parties couldn’t agree on price, according to people familiar with the matter.

Talks between two companies ended recently, the people said, asking not to be identified because the information is private. 

Milan-based Bending Spoons was in talks with banks about financing the potential acquisition of Vimeo, Bloomberg News reported March 5, citing people familiar with the matter. 

A representative for Bending Spoons declined to comment. New York-based Vimeo didn’t reply to phone calls and emails seeking comment.

Vimeo shares dropped after Bloomberg reported that Bending Spoons had ended its pursuit. The stock fell 3.6% to $4.04 at 12:17 p.m. in New York.  

Vimeo was spun off from Barry Diller’s IAC Inc. in 2021. The share price has plunged by more than 90% since it started trading. On Monday alone this week it slumped 27%, the most in more than two years.

Bending Spoons, one of Europe’s biggest mobile-app developers, bought note-taking app Evernote Corp. in 2022. In January, the group announced it was acquiring community events platform Meetup.com. Bending Spoons is looking for more acquisition targets after a fundraising round valued the Italian company at about $2.6 billion, people familiar with the matter said earlier. 

Bending Spoons’s products include Remini, a generative AI-powered photo editor, and a mobile video editing app called Splice. Its backers include former Google Chief Executive Officer Eric Schmidt, telecom billionaire Xavier Niel, tennis superstar Andre Agassi, actor Bradley Cooper and Colombian singer Maluma, according to its website. 

--With assistance from Katie Roof.

(Updates to add stock move in fifth paragraph.)

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