IAC has approved the spinoff of Angi, allowing shareholders to own the home improvement marketplace directly
New York: IAC has officially approved the spinoff of Angi, the home improvement marketplace it bought back in 2017. This move is set to close in the second quarter of the year.
When IAC reports its fourth-quarter results on February 11, both companies will share their financials. Angi started as Angie’s List in 1995 and went public in 2011.
As part of this transition, IAC CEO Joey Levin will step down but will become an advisor and executive chairman of Angi, working alongside CEO Jeff Kip.
Barry Diller, IAC’s chairman, praised Levin for his leadership, noting the value he created during his nearly ten years at the helm. After Levin’s departure, IAC won’t appoint a new CEO right away; instead, top executives will report directly to Diller.
IAC has a history of operating without a CEO during reorganizations, like when Greg Blatt stepped down in 2013 to lead Match Group.
Levin expressed confidence in both IAC and Angi’s futures, stating he plans to stay actively involved. Shareholders will receive direct ownership of Angi as part of the spinoff.
IAC first hinted at this spinoff in November, citing a 16% drop in Angi’s revenue to $296.7 million in the third quarter, mainly due to reduced marketing efforts.
Originally, IAC acquired Angie’s List for over $500 million and merged it with HomeAdvisor, forming a new public entity. Angi now has a market cap of around $770 million, with IAC holding 85% of it.
This spinoff has been in the works for years, but IAC delayed it in 2019 while finalizing the Match Group deal, which includes popular dating apps like Tinder and Hinge.
IAC is known for nurturing businesses and spinning them off, having done so with companies like Expedia and Ticketmaster.
