IAC to Spin Off Vimeo | Business News

IAC revealed today its intention to establish Vimeo as a separate, publicly listed entity.

Previously, in a communication to investors last month, IAC’s Chief Executive Officer, Joey Levin, indicated the parent company was considering distributing Vimeo to its shareholders. It appears the organization has progressed past initial consideration, with proposed plans scheduled for shareholder ratification during the first three months of 2021, and the formal separation anticipated in the second quarter.

“Vimeo’s substantial expansion, strong standing in the market, and significant potential for future growth have solidified its path forward,” Levin stated today. “The time is right for Vimeo to operate as an autonomous public company and achieve even greater success.”

Although Vimeo initially aimed to rival YouTube as a platform for general video content, its focus has evolved to offering video solutions tailored for professional use. The company reported in November that it had secured 1.5 million paid subscriptions and 3,500 business-level customers—and achieved positive EBITDA alongside a 44% increase in revenue compared to the previous year.

The announcement highlights that this represents the eleventh business IAC has separated, a procedure involving the distribution of its ownership interest to IAC investors. (Match Group finalized its detachment from IAC during the summer months.)

“We now have a unique chance to empower every team and organization globally to incorporate video into their workflows, enhancing all forms of communication and teamwork,” explained Vimeo’s CEO, Anjali Sud, in a statement. “Our comprehensive platform significantly reduces the obstacles of time, expense, and intricacy that once limited access to professional-grade video production. We are prepared for this new phase and dedicated to simplifying and maximizing the impact of video like never before.”