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Online video platform Vimeo plunges on Nasdaq debut following spin-off

Online video platform Vimeo plunges on Nasdaq debut following spin-off

Anjali Sud, centre, CEO of Vimeo, applauds with colleagues during the company's direct listing on Nasdaq, on May 25, 2021, in New York. (Photo: AP/Mark Lennihan)

NEW YORK: Shares of online video platform Vimeo, which was spun off from InterActiveCorp, were down 9.5 per cent on their debut on Nasdaq on Tuesday.

The company's stock opened at US$47.15 a share, compared to US$52.08 a share on Monday. Vimeo was trading on a when-issued basis since last week. Its shares later plunged to US$44 each on Tuesday.

When-issued trading refers to a conditional transaction, where a security, though authorised, has not been issued yet.

IAC, which has a history of building businesses and later splitting them into separate companies, had said last year that it was considering spinning off its stake in Vimeo. The company has already spun off its stake in Match Group, which houses popular online dating services including Tinder, Hinge, and OkCupid.

Demand for Vimeo's platform, which provides video creation, hosting and marketing tools to professionals and businesses, has spiked during the COVID-19 pandemic as more people shifted to working and learning remotely.

Source: Reuters

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