IAC Approves Spinoff of Angi, Home Improvement Marketplace
In a significant move, IAC’s board has given the green light to spin off Angi, a leading home improvement marketplace acquired in 2017. The transaction is expected to close in the second quarter of this year.
A New Chapter for Angi
As part of the spinoff, IAC CEO Joey Levin will step down from his role and become an advisor to the company. Levin will also take on a new role as Angi’s executive chairman, working closely with CEO Jeff Kip to drive the marketplace’s growth.
Leadership Changes at IAC
Upon Levin’s departure, IAC will operate without a CEO, with top executives reporting directly to Chairman Barry Diller. Publisher Dotdash Meredith, the company’s largest business, will also report to Diller, while the rest of IAC’s units will be overseen by operating chief Christopher Halpin.
A Proven Track Record
IAC has a history of successfully incubating businesses and spinning them off into separate companies. Notable examples include Expedia, Ticketmaster, and LendingTree. This spinoff marks another milestone in IAC’s strategy to create value for its shareholders.
Angi’s Growth Potential
Angi, founded in 1995 as Angie’s List, has a market cap of approximately $770 million. With IAC owning 85% of the company, the spinoff is expected to unlock significant value for shareholders. Despite a 16% year-over-year decline in revenue to $296.7 million in the third quarter, Angi remains a promising player in the home improvement space.
What’s Next
IAC shareholders will receive direct ownership of Angi as part of the spinoff. With the transaction expected to close in the second quarter, both companies will post their respective fourth-quarter results on February 11. As IAC and Angi embark on their separate journeys, investors will be watching closely to see how these two entities evolve and grow.
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