IAC considering spin-off of ownership stake in Vimeo

IAC announced it is considering a spin-off of its ownership stake in Vimeo to its shareholders; IAC also entered into an agreement to raise $150M at Vimeo at an enterprise value of approximately $2.75B. In a shareholder's letter, the company said: "Given Vimeo's success, and investor adulation for the Software-as-a-Service category generally, we expect Vimeo's access to capital inside of IAC will be much more expensive than access to capital outside of IAC, and that capital will be helpful to enable Vimeo to achieve its highest ambitions. We've always said we're the anticonglomerate, and we optimize for whatever allows our businesses to achieve their best chance of operating success. Right now, we believe Vimeo could benefit from having its own "native" equity currency in enterprise SaaS software, whether to finance R&D investment, recruit employees, or to make acquisitions. We just tested Vimeo's ability to access capital with a small private fundraise to bolster Vimeo's balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue." Reference Link