What IAC's Vimeo Spinoff Means for Investors

A much-anticipated IPO is about to take place, and investors can get in early. Renowned investor Barry Diller has created the anti-conglomerate in Interactive Corp (NASDAQ:IAC) by sticking to his playbook of acquiring a business, growing that business, and spinning it out. That is his key to unlocking immense value for shareholders, and he’s about to do it again with another promising company: high-end video-sharing site Vimeo.  Image source: Getty Images. The latest chapter in IAC’s playbook IAC buys into nascent, online companies, with clear momentum. But instead of holding onto these subsidiaries forever, IAC sets out to build them into industry leaders and eventually spin them off as stronger, stand-alone companies. That is exactly what Diller and company is planning to do in the second quarter of 2021 with Vimeo. Vimeo helps businesses of all sizes create and share professional-quality videos, both online to everyone, or within an organization. It makes money off subscription fees from its individual and corporate subscribers. Unlike YouTube, Vimeo focuses on more artistic video creation for filmmakers and businesses, rather than enabling vlogs or viral videos. IAC will divest Vimeo through an initial public offering because it believes Vimeo will attract more funding as…
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