IAC Shares Rally as Vimeo Growth Accelerates Ahead of Spinoff

Text size Nopparat Khokthong/Dreamstime.com IAC/InterActiveCorp shares were trading higher Tuesday after the internet holding company announced a strong financial update, and Wall Street responded with positive commentary on the stock. IAC (ticker: IAC) has been issuing monthly financial updates on all of its business lines, and the December update included positive signs from several of its businesses. Most important, the company said that revenue at Vimeo, a provider of cloud-based video editing tools, rose 57%, accelerating from 54% growth in November and 49% in October. Subscribers were up 24% for the second straight month, increasing from 22% in October, 21% in September and 19% in August. IAC has announced plans to spin off Vimeo to shareholders in 2021. The company said that revenue at IAC-controlled ANGI Homeservices (ANGI) was up 12% for the month, down from 14% growth in November, but up from 10% in October. Service requests were up 15%, continuing a recent moderating trend. Revenue at Dotdash, IAC’s collection of internet content sites, rose 27% in the month, by far the best growth of any month in 2020. Revenue at the Ask Media Group rose 59%, extending a turnaround that began in September, after negative comparisons in the…
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