Anjali Sud, CEO of Vimeo
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Shares of IAC are up more than 10% on Tuesday after the company announced it was divesting its entire stake in its video software company Vimeo.
Upon completion of the deal, which is expected to close in the second quarter of 2021, Vimeo will become an independent, publicly traded company.
The transaction is expected to take the form of a reclassification of IAC shares, the company said.
The planned spin-off comes as Software as a Service (SaaS) shares soar, boosted in part by the Covid-19 pandemic. Vimeo has reported strong user growth over the past year, up 24% in November. Vimeo, which previously focused on streaming entertainment, especially from independent filmmakers, turned its plan a few years ago to provide video services to businesses.
The company achieved 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 listed company to emerge from IAC. The company last agreed to split off all of its shares from online dating company Match Group.
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