Renowned investor Barry Diller has created the anti-conglomerate in Interactive Corp (NASDAQ: IAC) by sticking to his playbook of acquiring a business, growing that business, and spinning it out. That is his key to unlocking immense value for shareholders, and he’s about to do it again with another promising company: high-end video-sharing site Vimeo.
IAC buys into nascent, online companies, with clear momentum. But instead of holding onto these subsidiaries forever, IAC sets out to build them into industry leaders and eventually spin them off as stronger, stand-alone companies. That is exactly what Diller and company is planning to do in the second quarter of 2021 with Vimeo.