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Earnings

Vimeo raises $150 million as parent IAC looks to spin it off

(Reuters) - IAC/InterActiveCorp IAC.O said on Thursday it was considering spinning off its stake in the online video platform Vimeo that raised $150 million from Thrive Capital and Singapore's GIC at a $2.75-billion valuation.

IAC, which has a history of building businesses and later splitting them into separate companies, has already spun off and listed ten companies.

Most recently, the company spun off its stake in Match Group MTCH.O, which houses popular online dating services including Tinder, Hinge, and OkCupid.

“We’re now evaluating a full spin-off to enable Vimeo with the complete suite of tools available in the public markets,” IAC Chief Executive Officer Joey Levin said.

“There’s a long way to go before we’re decided on that, and far too early to speculate on what the terms of that spin would look like.”

In a bid to boost subscribers, Vimeo in October launched a free video messaging tool on its platform and collaborated with GoDaddy Inc GDDY.N to make video tools available along with the website builder's suite.

Demand for Vimeo’s platform, which provides video creation, hosting and marketing tools to professionals and businesses, has spiked in the lockdown as more people shift to working and learning remotely. Shares of the company, which have gained about 61% this year, rose 8.8% in extended trading.

IAC also reported a quarterly revenue rise of 11.8% to $788.4 million, beating analysts' estimates of $766.7 million, according to Refinitiv IBES data. (bit.ly/3p1rx4P)

Revenue from IAC’s largest unit, ANGI Homeservices, increased 9% to $389.9 million, beating analysts’ estimates of $383.1 million.

Reporting by Chavi Mehta and Ayanti Bera in Bengaluru, Writing by Subrat Patnaik; Editing by Shounak Dasgupta and Uttaresh.V

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