What happened Shares of IAC/InterActiveCorp (NASDAQ: IAC) rose 10.9% during the month of January, according to data provided by S&P Global Market Intelligence. The holding company, which owns a portfolio of internet businesses such as ANGI Homeservices, Vimeo, Dotdash, Care.com, and others, rose after the company raised more money for Vimeo at a very attractive valuation before its upcoming spinoff. So what IAC's business model is to acquire and nurture internet business, giving entrepreneurs the benefit of the company's expertise and permanent capital. Once a business reaches significant scale and can stand on its own, IAC spins it off into an independent business. Successful past spinoffs include Expedia, Ticketmaster (now part of Live Nation), LendingTree, and Match Group. Image source: Getty Images. IAC is getting ready to spin off its internet video software-as-a-service (SaaS) business Vimeo. In November, IAC raised about $150 million from outside investors in Vimeo at a valuation of $2.75 billion. However, after the election and the release of COVID-19 vaccines, it appears Vimeo's valuation has taken off. In January, IAC announced it was raising another $300 million for Vimeo in two tranches, one at a $5.2 billion valuation and another at $5.7 billion. That's a doubling in value in just two months. Now what The spinoff to IAC shareholders is scheduled to occur by the second quarter, and should be successful -- Vimeo grew revenue 57% in December and into January, accelerating its growth rate even relative to the rest of the year, as major enterprises subscribed to its video service to reach employees and customers during the pandemic. After the spinoff, IAC has a number of other promising businesses that could one day become successes like Vimeo. Of note, Dotdash is also showing accelerating revenue entering 2021, but there are other candidates as well. Since 1995, IAC has compounded value at 16%, versus 10% for the overall market, so it's easy to put your trust in IAC management, even after its big run. 10 stocks we like better than IAC/InterActiveCorp.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and IAC/InterActiveCorp. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool recommends Live Nation Entertainment. The Motley Fool has a disclosure policy.Source