What Investors Need to Know About the Vimeo Spin-Off

The former IAC company heads out on its own. A spin-off is when a business unit of an existing public company is separated and becomes its own public company. For example, PayPal Holdings used to be a part of eBay until it was spun off in 2015. Spin-offs can be an interesting place to look for investment ideas, because unlike IPOs, they don’t tend to attract a lot of attention or excitement. Last year, IAC/InterActiveCorp (NASDAQ:IAC) spun off its online dating app, Match Group, which went on to perform well in its first year as a public company. Last month, IAC gave investors another spin-off to chew on with video publishing platform Vimeo (NASDAQ:VMEO). Given the success of Match Group, should investors pay attention to Vimeo? What exactly is Vimeo? Many people are familiar with Vimeo as a sort of little brother to Alphabet’s YouTube. This was true five years ago, but Vimeo pivoted its business model in 2017 from serving as a viewing platform to operating as a software company helping businesses and creators edit and publish high-quality, ad-free videos. Vimeo still operates its viewing platform, which counts over 200 million users, but it also allows creators to upload, edit,…
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