Video Spinoff Vimeo Slumps in Nasdaq Trading Debut
(Bloomberg) -- Vimeo Holdings Inc. fell 13% in its trading debut as a standalone company after being spun off from Barry Diller’s IAC/InterActive Corp.
The business video software company is the 11th public company to be spun off from IAC, joining Match Group Inc., Expedia Group Inc. and LendingTree Inc.
Vimeo’s shares closed trading Tuesday at $45.39 a share. Vimeo ended the day with a market value of $7.2 billion. Fully diluted, that valuation rises to about $8.4 billion, based on the shares listed in a statement.
IAC said in January that the business was valued at about $6 billion in a $300 million funding round. IAC fell 5.6% to $158.74 a share on Tuesday.
Video services such as Vimeo have benefited during the coronavirus pandemic as more businesses and people are turning to the medium to communicate and conduct business while working from home.
Vimeo will continue shifting its focus to business customers, Chief Executive Officer Anjali Sud said in an interview. The company is no longer “the cooler cousin of YouTube,” she said.
Users of its cloud-based video software range from small businesses like schools and coffee shops to large enterprises such as Amazon.com Inc. and Intuit Inc.
Sud said she sees Vimeo as a one-stop shop for creating video that can be shared on other platforms. “We don’t want to be the destination, we want to be the tools,” she said.
Vimeo, as a unit of IAC, had $283 million in revenue last year, up 44% from $196 million in 2019, according to its filings with the U.S. Securities and Exchange Commission. The business had a net loss of $51 million last year, down from $76 million the year before.
IAC shareholders, as of close of business Monday, received 1.6235 shares of Vimeo stock for each IAC share they held, according to the statement. The shares are trading on the Nasdaq under the symbol VMEO.
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