IAC/Interactive Vimeo Spin-off Notes
January 29, 2023 Update
- Great article on SOTP valuations
- When it works and when it doesn’t
- Why it’s valid for IAC
January 8, 2021 Notes
- Here is my updated SOTP:
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IAC Stock Has Soared Through Spinoffs And Vimeo Is Next. Here’s Why You Should Take A Look.
December 23, 2020 Notes
- On December 22, 2020, IAC/Interactive announced that it would spin off Vimeo in Q2 2020.
- IAC recently took a $150MM investment in Vimeo at a $2.75BN valuation.
- In Q3 2020, Vimeo grew revenue 44% to $75.1MM or $300.4MM on an annualized basis.
- As such, Vimeo was valued at a 9.2x revenue multiple.
- IAC shares surged 14% on the news.
- By my math, IAC/Interactive looks fairly valued to slightly overvalued at its current price.
- Nonetheless, I can see why the stock traded up so much. Vimeo is a coveted asset, and I expect it to trade much higher than a $2.75BN implied valuation.
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