In a recent development, IAC Inc. (NASDAQ:IAC), a leader in media and Internet with a market capitalization of $3.65 billion, has amended its existing services agreement with tech giant Google (NASDAQ:GOOGL). The amendment, signed on January 20, 2025, extends the agreement’s expiration to March 31, 2026. The updated contract includes an automatic one-year renewal clause, which can be negated only if either party issues a non-renewal notice by December 31, 2025.
This contractual extension underscores the ongoing business relationship between IAC and Google, with the new terms set to take effect starting April 1, 2025. The specifics of the agreement will be disclosed in IAC’s annual report on Form 10-K for the fiscal year ending December 31, 2024. The announcement comes as a significant move for IAC, which has a diverse portfolio of companies including Vimeo (NASDAQ:VMEO), Dotdash Meredith (NYSE:MDP), and Care.com, generating annual revenues of $3.88 billion.
The amendment to the services agreement could potentially influence IAC’s operational dynamics with Google, although the precise details and financial implications remain to be seen in the forthcoming annual report. According to InvestingPro analysis, IAC currently trades at a low revenue valuation multiple and appears undervalued based on its Fair Value assessment. The company, headquartered in New York, is known for its strategic partnerships and has a history of evolving its business model through collaborations and acquisitions, maintaining a healthy liquidity position with a current ratio of 2.75.
Investors and stakeholders in the technology and media sectors may view this extension as a positive indicator of IAC’s stability and continued growth potential. The agreement with Google, a major player in the digital services space, is likely to be a key factor in IAC’s strategy moving forward. For deeper insights into IAC’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, visit InvestingPro.
The information regarding IAC’s agreement with Google is based on a press release statement and the subsequent SEC filing, providing a factual account of the company’s latest business dealings. As the market observes IAC’s trajectory, the details in the annual report will offer further insights into the company’s future plans and financial health, with the next earnings report expected on February 11, 2025.
In other recent news, IAC Inc. has designated Care.com as a separate segment, providing investors with more detailed insights into the platform’s performance. IAC also announced a leadership shakeup, with Joey Levin stepping down as CEO to assume the role of Executive Chairman at Angi. This coincides with IAC’s decision to spin off its entire stake in Angi, a move expected to reallocate capital and management focus.
Benchmark analysts have maintained their Buy rating for IAC, despite the company’s recent underperformance. Meanwhile, Piper Sandler has downgraded IAC’s rating to neutral and reduced its price target to $54, while TD Cowen maintains a Buy rating with a revised price target of $77.
IAC’s subsidiary, Match Group (NASDAQ:MTCH), has initiated a quarterly dividend program and a new $1.5 billion share buyback authorization. Furthermore, Dotdash Meredith Inc., another IAC subsidiary, has successfully amended its credit agreement with JPMorgan Chase (NYSE:JPM) Bank, resulting in reduced interest rates for its term loans.
These developments come amidst expectations of future mergers and acquisitions, and a more active role for Barry Diller, IAC’s Senior Executive and Chairman. The completion of the Angi spin-off is anticipated in the first half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.