The board of IAC/InterActive has approved a plan to spin off its stake in the video software company Vimeo into a separate, publicly-traded company.

The company said it plans to hold a stockholder meeting in the first quarter of 2021 to consider the proposal. If approved, the spin off is expected to occur in the second quarter of 2021.

IAC shares were up more than 16% following the news.

“The combination of Vimeo’s remarkable growth, solid leadership position, and enormous market opportunity have made clear its future,” IAC chief executive officer Joey Levin said in a statement. “It’s time for Vimeo to spread its wings and become a great independent public company.”

In November, IAC announced Vimeo had raised $150 in equity from Thrive Capital and GIC (Singapore’s sovereign wealth fund), and it was considering spinning off the company. The equity raise valued Vimeo at $2.75 billion, IAC said.

In its third-quarter earnings, IAC reported Vimeo had revenue of $75.1 million, an increase of 44% year over year. The company’s subscriber base grew 21% to 1.46 million. The company reported an operating loss of $3.3 million, an improvement over an $11.2 million loss in 2019.

“We have long believed in the power of video to advance human expression and transform businesses,” Vimeo CEO Anjali Sud said. “Our all-in-one solution radically lowers the barriers of time, cost, and complexity that previously made professional-quality video unattainable. We’re ready for this next chapter and focused on making video far easier and more effective than ever before.”

The Vimeo spinoff would be the eleventh by IAC. Last December, the company announced it had agreed to spin off the online dating company Match Group, which owned Tinder, Hinge, OkCupid, PlentyOfFish, and Match.com. That spinoff was completed this summer.

IAC said it expects the Vimeo transaction will entail reclassifying IAC shares to give its stockholders a proportionate amount of Vimeo stock.