IAC to spin off Angi stake, Levin named Executive Chairman

NEW YORK – IAC (NASDAQ: IAC), a prominent media and internet company, announced plans today to spin off its entire stake in Angi Inc. (NASDAQ: ANGI), a leading digital marketplace for home services with a market capitalization of $770.77 million and an impressive 95% gross profit margin. The decision will see IAC shareholders gain direct ownership of Angi, marking the company's transition to full independence. According to InvestingPro analysis, Angi currently appears undervalued, with its stock trading near 52-week lows at $1.56, compared to its peak of $3.10.

Concurrently, IAC is undergoing a leadership restructure. Joey Levin, who has served as IAC's CEO, is set to become an advisor to the company. Levin has also been appointed as the Executive Chairman of Angi, where he will work closely with Angi's CEO, Jeff Kip, to steer the company's future direction. IAC's CFO and COO Christopher Halpin, along with Chief Legal Officer Kendall Handler, will report directly to Barry Diller, IAC's Senior Executive and Chairman, after Levin's transition.

Barry Diller lauded Levin's leadership at IAC, highlighting his significant role in the company's success over nearly a decade. Diller also expressed confidence in Levin's ability to lead Angi's growth as an independent entity.

The spin-off is designed to be tax-free and is expected to conclude in the first half of 2025, not before March 31, 2025. It is subject to conditions, including final approval by the IAC Board of Directors and a tax opinion. This strategic move is anticipated to allow both IAC and Angi to concentrate on their respective business needs and strategies, with the potential for enhanced growth opportunities and capital allocation.

The companies have also confirmed their financial expectations for the fourth quarter of 2024, remaining consistent with previous forecasts. Both IAC and Angi will post their respective fourth quarter results on their investor relations websites after market close on Tuesday, February 11, 2025, and will host a joint conference call the following day to discuss the results. InvestingPro data reveals positive momentum with net income growth expected this year, while analysts have recently revised earnings estimates upward. Subscribers to InvestingPro can access 11 additional exclusive insights and a comprehensive Pro Research Report for deeper analysis of Angi's financial health and growth prospects.

This news article is based on a press release statement.

In other recent news, ANGI HomeServices is considering a spin-off from its parent company, IAC, which currently holds approximately 85% ownership. This development was announced alongside ANGI's third-quarter results, which revealed a consolidated revenue drop of over 15%, despite a resilient international segment, particularly in Europe, showing a 15% year-over-year revenue increase. Various firms including RBC Capital Markets, Citi, and Goldman Sachs have all adjusted their outlook on ANGI Homeservices (NASDAQ:ANGI), with RBC and Citi reducing their stock price targets and Goldman Sachs downgrading the company's stock from Buy to Neutral. The potential spinoff of ANGI from IAC is seen as a strategic move to declutter IAC's portfolio and provide a clearer focus on its remaining assets. KeyBanc Capital Markets also revised its price target for ANGI HomeServices, reducing it to $2.00 from the previous $3.00, yet maintaining an Overweight rating on the stock. These are the recent developments in ANGI HomeServices and IAC.

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