Connected Ventures, the company that owned CollegeHumor and Bustedtees was acquired by IAC. At the time Vimeo was a side project of Jake Lodwick and was part of the Connected Ventures business, but it wasn't making any money and didn't impact the IAC acquisition price. Long story short, Vimeo's cost to operate became very expensive and started to impact Connected Ventures core business (CollegeHumor and Bustedtees). So Vimeo was spun out of Connected Ventures and made its own division in IAC.
