IAC’s Vimeo Raises New Funds at $6 Billion Valuation

(Bloomberg) -- Barry Diller’s IAC/InterActive Corp. said its video software company Vimeo is valued at about $6 billion after a recent funding round, nearly doubling the valuation before the unit is scheduled to be spun off early in the second quarter.

Vimeo raised $300 million from T. Rowe Price Group Inc. and Oberndorf Enterprises LLC, the company said in a statement Monday. The investment follows a $150 million equity round in November, when IAC said it planned to spin Vimeo off into a separately traded company.

The new capital will be used to accelerate investment into growth, innovation and talent, the company said.

“As the world embraces video like never before, Vimeo is in an incredibly strong position,” Chief Executive Officer Anjali Sud said in the statement.

Video services such as Vimeo have benefited during the pandemic as more businesses and people are turning to the medium to communicate and conduct business while working from home. Vimeo’s cloud-based video software has more than 200 million users, including companies like Amazon.com Inc., Starbucks Corp., and Deloitte LLP. In December, Vimeo said revenue increased 57% year-over-year, it’s highest growth rate in 2020.

If completed, Vimeo will be the eleventh public company spun off from IAC, joining Match Group, Expedia, and Lending Tree.

IAC will release fourth quarter earnings, including Vimeo, on Feb. 3.

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