IAC shares soar after Vimeo spin-off announcement
Anjali Sud, CEO of Vimeo
NurPhoto | NurPhoto | Getty Images
IAC’s shares rose up to 16.6% Tuesday morning after the company announced it would spin off its full stake in video software company Vimeo.
Vimeo will become an independent publicly traded company upon completion of the transaction, which is expected in the second quarter of 2021.
The transaction is expected to take the form of a reclassification of IAC shares, the company said.
The planned spin-off is due to the fact that SaaS shares (Software as a Service) are increasing sharply and are being partially reinforced by the Covid-19 pandemic. Vimeo saw strong user growth over the past year. Subscribers grew 24% in November. Vimeo, which previously focused on streaming entertainment, especially from independent filmmakers, implemented its plan to deliver video services to businesses a few years ago.
The company reached a valuation of $ 2.75 billion in early November after raising $ 150 million in equity from Thrive Capital and GIC, IAC said.
This makes Vimeo the 11th stock company that emerged from IAC. The company recently agreed to spin off all shares in the online dating company Match Group.
Subscribe to CNBC on YouTube.