IAC Spins Off Vimeo
December 22, 2020
has approved a plan to spin-off its full stake in Vimeo to IAC shareholders.
Upon completion, Vimeo will become an independent, separately-traded public
company, the 11th such company to emerge from IAC and its predecessors. IAC
plans to hold a stockholder meeting in the first quarter of 2021 to review and
approve a proposal to implement the spin-off, which, if approved, is expected to
occur in the second quarter of 2021.
The transaction is anticipated to take the form of a reclassification of IAC
shares, with the effect of IAC stockholders receiving a proportionate amount of
Vimeo stock. The proposed transaction is intended to qualify as tax-free to IAC
and its stockholders for US federal income tax purposes. Further details will be
provided in a registration statement on Form S-4 relating to the transaction,
which IAC and the new Vimeo holding company will soon file with the Securities
and Exchange Commission.
"The combination of Vimeo's remarkable growth, solid leadership position, and
enormous market opportunity have made clear its future," said Joey Levin, CEO,
IAC. "It's time for Vimeo to spread its wings and become a great independent
separation is expected to afford numerous benefits, such as the creation of
"pure-play" Vimeo equity currency through which the company could more
effectively raise capital as it aims to invest further in product, technology,
enterprise sales and international expansion and pursue strategic acquisitions.
"We have long believed in the power of video to advance human expression and
transform businesses," said Anjali Sud, CEO of Vimeo. "Today we have a rare
opportunity to help every team and organization in the world integrate video
throughout their operations, across all the ways they communicate and
collaborate. Our all-in-one solution radically lowers the barriers of time,
cost, and complexity that previously made professional-quality video
unattainable. We're ready for this next chapter and focused on making video far
easier and more effective than ever before."
The proposed transaction is subject to a number of conditions including final
approval by IAC's Board of Directors, approval of the separation proposal by IAC
stockholders, and receipt of a tax opinion.