Stock spinoff that we are watching closely

As you all know, Spinoff stocks sometimes provide value for those who are able to pick out the right spinoff to invest in. In cases likes this, to win, you must find a Spinoff situation that will provide great value. As a value investor, we look for a good situation that we can use to turn 1 dollar into more money.  

From our previous studies, we found that when a company spinoff part of its company, it sometimes unlocks value for investors.  

To read more about how stock spinoff works, please see this post below. 

What Is Stock Spinoffs: The Basics You Need To Know

How To Make Money By Investing In Stock Spinoffs.

We think we may have found a stock that may become valuable in the near future. If you have not heard, IAC is spinning off Vimeo. 

In November, IAC CEO informed the shareholder that it intends to spinoff Vimeo “begun contemplating spinning Vimeo off to our shareholders.” The company started out contemplating spinning off Vimeo but now the plan has been confirmed and it’s going to happen.

When is Vimeo Spinoff from IAC going to happen? 

According to information available to Investingport.com, the proposal 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.” The company said.

“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.”

What we know about Vimeo’s business

·      1.5 million paying subscribers and 3,500 enterprise clients

·      most recent quarter was with positive EBITDA, plus year-over-year revenue growth of 44%

·      In every month from April through November, Vimeo’s revenue was at least 40% higher compared with the same month of 2019 – wsj

·      Its third-quarter revenue was $75.1 million – wsj

·      At the end of September, Vimeo had 1.46 million subscribers, up 21% from a year earlier- wsj

·      Vimeo recorded a third-quarter operating loss of $3.3 million, compared with an $11.2 million operating loss in the year-ago period. - wsj