IAC to Spin Off ANGI

By Bobby Samwell • Tuesday, January 14 15:18 • Permanent Link

IAC (NASDAQ: IAC) has announced its plan to spin off its full stake in ANGI (NASDAQ: ANGI), a leading platform for home services, to IAC shareholders. This move will result in IAC and ANGI becoming wholly separate entities, with the spin-off expected to be in the form of one share/one vote common stock of ANGI, eliminating ANGI’s dual-class structure.

Joey Levin, the CEO of IAC, will be transitioning to the role of advisor to the company upon the completion of the spin-off. Meanwhile, ANGI has appointed Mr. Levin as the executive chairman of ANGI, and he will work in partnership with ANGI CEO Jeff Kip to shape the next chapter of the company.

As a result of the spin-off, IAC does not intend to appoint a new CEO. Instead, IAC's Chief Financial Officer & Chief Operating Officer, Christopher Halpin, and Chief Legal Officer, Kendall Handler, will report directly to Barry Diller, the Senior Executive and Chairman of IAC.

The completion of the proposed spin-off transaction is expected to occur in the first half of 2025 but no sooner than March 31, 2025, subject to final approval by the IAC board of directors and receipt of a tax opinion.

Both IAC and ANGI have affirmed their prior financial expectations for the fourth quarter of 2024. Additionally, after the close of market trading on Tuesday, February 11, 2025, they will post their respective fourth quarter results and host a conference call on Wednesday, February 12, 2025, at 8:30 a.m. ET to answer questions regarding their fourth quarter results.

This development will allow IAC management to focus on its broader portfolio as well as new growth opportunities, with a simplified IAC benefiting from an enhanced ability to use its stock to make acquisitions and incentivize employees. On the other hand, ANGI will benefit from a more attractive equity currency to accelerate growth, undiluted focus on its specific operating and strategic priorities, and streamlined decision-making.

The market will be closely watching the forthcoming financial results and the subsequent impact of this strategic move on the performance of both IAC and ANGI. Today the company's shares have moved 5.8% to a price of $1.65. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.