IAC/Interactive Vimeo Spin-off Notes
January 8, 2021 Notes
- Here is my updated SOTP:
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.