Communication tech companies are booming
Software firms that help other companies communicate are booming this year thanks to pandemic-driven remote-work.
Why it matters: Even when a vaccine is rolled out and lockdown provisions are lifted, most companies will likely maintain at least some work-from-home flexibility, which will bode well for software firms like Zoom, DocuSign, Twilio, Microsoft, Slack and others.
Driving the news: IAC, the internet holding company chaired by media mogul Barry Diller, announced to shareholders on Tuesday that it plans to spin off its enterprise video software company Vimeo.
- Vimeo raised $150 million from outside investors this year, valuing the company at $2.75 billion — 10 times the company's revenue.
- The round helped to boost Vimeo's fast-growing enterprise software licensing business, which now powers video tech for over 3,500 companies.
- "We have long believed in the power of video to advance human expression and transform businesses," said Anjali Sud, CEO of Vimeo, in a statement.
The big picture: "While the pandemic is killing scores of businesses that depend on office workers, it's also making way for startups and titans alike to conquer a new industry — powering our remote lives," Axios' Erica Pandey notes.