Anjali South, CEO Vimeo
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IAC is giving up its full shareholding in its video software company, Vimeo, the company announced on Tuesday.
IAC shares increased by almost 6% in premarket trading.
Following the completion of the transaction, which is expected to be completed in the second quarter of 2021, Vimeo will become an independent, listed company.
The transaction is expected to take the form of a reclassification of IAC shares, the company said.
The planned goal comes as stocks of software as a service (SaaS) are growing, partially fueled by the Covid-19 pandemic. Vimeo has reported a strong increase in users in the last year, with subscribers up 24% in November. Vimeo, which previously focused on streaming entertainment, especially from independent filmmakers, pivoted its plan a few years ago to provide video services for companies.
The company made a valuation of $ 2.75 billion in early November, after raising $ 150 million in equity from Thrive Capital and GIC, IAC said.
This will make Vimeo the 11th public company to leave the IAC. The company agreed last time to give up all its shares of the online dating company Match Group.
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