Business

IAC Plans To Spin Off Vimeo To Shareholders

NC Desk December 25, 2020

Topline

IAC, the internet and media conglomerate founded by billionaire Barry Diller, on Tuesday announced it plans to spin off its majority stake in the video-streaming platform Vimeo to IAC shareholders, which will make it the eleventh independent, publicly traded company to emerge from IAC.

Barry Diller attends the Heavenly Bodies: Fashion & The Catholic Imagination Costume Institute Gala … [+] at The Metropolitan Museum of Art on May 7, 2018.

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Key Facts

IAC said it expects to reclassify its shares, with IAC stockholders receiving a proportionate amount of Vimeo stock.

If the proposal is approved by stockholders, the deal is expected to be completed by the second quarter of 2021.

Key Background

Vimeo raised $150 million in equity investment in November and was valued at $2.75 billion. Vimeo has more than 200 million global users and 3,500 customers, including Amazon, Starbucks and Deloitte. IAC reported that Vimeo’s revenue increased by 44% to $75.1 million in the quarter ending September 30 with an operating loss of $3.3 million and subscribers grew 21% to 1.46 million.

Tangent

IAC’s holdings also include Dotdash and Care.com and it has majority ownership of ANGI Homeservices, which includes Angie’s List, HomeAdvisor and Handy. IAC completed its full spin off of the Match Group, which owns Hinge, Tinder, Match and other dating services, in July.