Dec
22
2020
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IAC plans to spin off Vimeo as an independent company

IAC announced today that it plans to turn Vimeo into an independent, publicly traded company.

Last month, IAC CEO Joey Levin wrote a letter to shareholders in which he said the holding company had “begun contemplating spinning Vimeo off to our shareholders.” It sounds like the company has moved beyond the contemplation phase, with plans that will be submitted for stockholder approval in the first quarter of 2021, and the actual spin off happening in Q2.

“The combination of Vimeo’s remarkable growth, solid leadership position and enormous market opportunity have made clear its future,” Levin said in a statement today. “It’s time for Vimeo to spread its wings and become a great independent public company.”

While Vimeo once competed with YouTube as a consumer video destination, its strategy has shifted in recent years to providing video tools for businesses. In November, the company said it had 1.5 million paying subscribers and 3,500 enterprise clients — and that its most recent quarter was with positive EBITDA, plus year-over-year revenue growth of 44%.

The announcement notes that this is the eleventh company that IAC has spun off, a process in which it distributes its ownership stake to IAC shareholders. (Match Group completed its separation from IAC over the summer.)

“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,” said Vimeo CEO Anjali Sud in a statement. “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.”

Nov
05
2020
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Vimeo raises $150M, while IAC is ‘contemplating’ a spin-off

Vimeo has raised $150 million in new equity funding, announced in conjunction with the third quarter earnings of its parent company IAC.

In a letter to shareholders, IAC CEO Joey Levin said the company has “begun contemplating spinning Vimeo off to our shareholders.”

“Given Vimeo’s success, and investor adulation for the Software-as-a-Service (SaaS) 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,” Levin continued, adding, “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.”

Over the summer, Match Group (which owns a variety of dating services, including Tinder) completed its separation from IAC, with IAC’s ownership distributed to IAC shareholders.

Vimeo, meanwhile, has shifted its focus over the past couple years — instead of trying to compete with YouTube as a consumer video destination, it sells video tools to enterprises and other businesses. For example, it recently launched a free video messaging product called Vimeo Record.

The company says it has 1.5 million paying subscribers and more than 3,500 enterprise clients, including Amazon, Starbucks, Deloitte, Zendesk, Rite Aid and Siemens.

The new funding comes from Thrive Capital and GIC. According to the earnings report, in Q3, Vimeo grew revenue by 44% year-over-year, to $75.1 million. And it had its first quarter of positive EBITDA — $3.4 million.

“Our goal is to radically simplify how businesses create and share video, with tools that are far more intuitive and cost-effective than they’ve been historically,” said Vimeo CEO Anjali Sud in a statement. “We’re energized to access additional capital to pursue this enormous opportunity with the full focus and scale of the Vimeo platform.”

Oct
27
2020
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Vimeo introduces free video messaging with Vimeo Record

Vimeo Record is a new product that allows teams to communicate through video messages.

Vimeo CEO Anjali Sud said that while the pandemic has prompted many offices to embrace digital communication tools like Zoom, “There’s a whole host of work communication that needs asynchronous messaging.”

Besides, sometimes a video can get your message across more effectively, rather than “scheduling another call or writing a long email or Slack thread.”

Sud said that since she became CEO of the IAC-owned video platform in 2017, Vimeo has shifted its focus from being a destination site that competed with YouTube to providing video tools for businesses: “We really want to be the single corporate video solution for the modern organization.”

Vimeo Record is an extension of that strategy. During the pandemic, Vimeo’s revenue has already been growing 40% to 50% year-over-year each month, but Sud said this product been in the works since before then, reflecting the long-term trend that “more and more teams are distributed, and they need ways to communicate.”

Collaborate better remotely with Vimeo Record from Vimeo Staff on Vimeo.

So Vimeo created a Google Chrome extension that allows users to easily record their screen or their face, share and comment on those recordings, organize them into folders with different permissions and receive notifications when someone watches.

Sud said around 400 companies have already been beta testing the feature. Teams are using it to review design and code, to work together to resolve customer support tickets, to share messages from company leadership and more.

Asked whether there’s been a learning curve for recording effective video messages, Sud said, “The biggest barrier is just making it not feel intimidating. The easiest way [to do that] is for people to receive a video message themselves. If a colleague sends you something that’s not perfect, it lowers that intimidation factor.”

She also noted that Vimeo Record fits into the company’s freemium business model. Anyone can send unlimited messages for free, but Vimeo will charge for premium features like the ability to host videos on a third-party, custom-branded video platform.

“My team is using Vimeo Record to share product demos internally and to give our customers a preview of what’s launching soon,” said Mailchimp’s director of product marketing Trevor Wolfe in a statement. “We love it! It adds a personal touch that you just can’t replicate with email or a chatroom message.”

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