InterActiveCorp (IAC) revealed that the spin-off of Vimeo is concluded and Vimeo will begin trading as a separate, publicly-traded company on the NASDAQ under the symbol “VMEO”. Shares of IAC have gained 60% over the past year.
Notably, Vimeo marks the 11th company emerging from IAC over the last 25 years. (See IAC stock analysis on TipRanks)
Per the terms of the deal, IAC shareholders received 1.6235 shares of the newly-formed VMEO for each share of IAC held.
IAC CEO Joey Levin commented, “The evolution of Vimeo into a thriving independent public company is the embodiment of the IAC way…We are enormously grateful to all the brilliant people, beginning with Jacob Lodwick many years ago, who’ve made this journey possible. Now we get back to our favorite part—building the next one.”
Following the completion of the spin-off, Oppenheimer analyst Jason Helfstein reiterated a Buy rating but decreased the price target to $185 from $270 (15% upside potential) on the stock.
Helfstein said, “Given the large potential opportunity in the child and elder care market, we expect IAC management to increase disclosure around Care.com over the next few quarters, which should support our target $1.5B valuation for the segment.”
Overall, the stock has a Strong Buy consensus rating with 10 Buys and 1 Hold. The average analyst price target of $267.09 implies 66% upside potential from current levels.
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