Wix.com announced its $36 million-worth acquisition of DeviantArt in February this year.
By adding DeviantArt into its product arsenal, Wix hopes to expand its boundaries by offering its users a diverse range of tools which they will need to build and administer a fully functional website.
Here’s what the acquisition means for DevianArt.
DeviantArt’s Future With Wix
DevianArt is an online community of artists and designers. It has approximately 40 million registered users putting up some 325 million individual pieces of art work on the platform.
DeviantArt was founded in 2000. Since then, it has been capitalizing on receiving backing from companies like DivX, AutoDesk, and other interested third parties. So far, the company had received a whooping $13.5 million from the aforementioned companies, although the actual value was not stated at the time of its acquisition by Wix.
Wix stated that DeviantArt would continue to run its operation independently, although they would also use it to boost their business in a couple of ways.
Wix.com hopes to merge the functionality of DeviantArt’s website, particularly its web design tools, in a bid to help users expand their web presence. These tools are inclined toward design and e-commerce, among other features that are frequently needed by users to run a successful internet business, a need indicated by a number of Wix review writers.
The second thing that Wix said it would do is to expand the creative community and DeviantArt’s own repository in the Wix platform. This would give Wix users the freedom to use that creativity on their various site-building operations.
The Key To DeviantArt’s Success
Over its 16 years of existence, the site has managed to build a loyal community of creative designers who are highly engaged and always eager to produce stunning art pieces. The platform is full of talented individuals and is robust when it comes to artwork.
DeviantArt was mainly successful because it was a platform established with the sole purpose of bringing out creativity in people. This passion could then be shared with the rest of the world. This passion and creativity merges well with the Wix platform in such a way that it can benefit the company and its users as a whole. However, with this combined effort to join the Wix community, the platform is set to take innovations to the next level. Wix also intends to make DeviantArt a better place for the creative community. The company wants to do this by developing apps for both desktop and mobile use.
The Financial Implications
DevianArt’s stock has been skyrocketing since this acquisition in February 2017. This Bull Run is mainly attributed to the company’s differentiated products and services, as well as the existence of a strong fundamental business model.
Following these updates, many analysts now believe that the company is poised to see an increased number of subscribers in both their free and paid services. Currently, the stock of the company is already displaying this expectation over both the near-term and long term future.