IAC is looking to offload the majority stake in its publicly-listed subsidiary, Angi in a tax-free transaction, making it the 10th standalone entity to come directly from Barry Diller’s firm.
The company said if the Angi spinoff move does occur, the 85% stake would effectively be distributed to shareholders, allowing them to hold both Angi and IAC separately.
The company said there is no specific timeline for the decision on the spinoff, but should it occur, it would be expected to happen by the end of Q2.
“In a consistent pattern of anti-conglomerating, Angi would join a long list of businesses built up over time and spun off by IAC. Strategically, operationally, and financially, Angi is now ready to stand separately with a more liquid equity currency and the ambition to win, while IAC continues to simplify and focus,” IAC said in its shareholder letter.
Angi would join Expedia, Vimeo, TripAdvisor, Ticketmaster, and Match Group, which are among the popular names spun out of IAC.
Ongoing user-experience enhancements, lower sales, and marketing spend were among the reasons for the double-digit percentage decline in revenue.
For the three months ended September 30, the company swung to a net earnings of $35.2M, vs. a loss of $5.4M for the same period a year go.
On a per share basis, it earned 7 cents, while analysts on average were expecting nil.
For 2024, the company sees adjusted earnings of $140M to $145M and and operating income of $10M to $35M
