Online video platform Vimeo plunges in debut after IAC spin-off

(Reuters) -Shares of online video platform Vimeo Inc, which was spun off from InterActiveCorp, were down 9.5% on their debut on Nasdaq on Tuesday.

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

(Reporting by Niket Nishant and Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

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