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Today, IAC Inc. (NASDAQ:IAC), a leader in media and Internet operations with a market capitalization of $3.67 billion, announced the approval by its Board of Directors to spin off its subsidiary Angi Inc. The decision, made on Thursday, will result in a special dividend distribution of all Angi capital stock held by IAC to its shareholders. According to InvestingPro analysis, IAC maintains a strong financial position with liquid assets exceeding short-term obligations and operates with moderate debt levels.
IAC stockholders of record as of the close of business on March 25, 2025, will receive shares of Angi Class A common stock on a pro rata basis on March 31, 2025. The distribution is contingent upon certain conditions outlined in Angi’s Form S-3 Registration Statement. While IAC currently trades at $44.09, analysis suggests the stock may be undervalued, with analysts setting price targets ranging from $44.50 to $100.
The preliminary distribution ratio, based on the number of shares held by IAC as of March 7, 2025, is approximately 0.5178 shares of Angi Class A common stock for each share of IAC stock. The final ratio will be determined closer to the Record Date and may vary. No fractional shares will be distributed; instead, shareholders will receive a cash payment for any fractional shares.
Beginning on or shortly before March 25, 2025, Angi’s shares will continue to trade on Nasdaq under the ticker "ANGI" and will also trade on a "when-issued" basis. IAC common stock will be available in two markets: a "regular-way" market and an "ex-distribution" market, the latter of which will trade without entitlement to the Angi stock dividend.
The spin-off is part of IAC’s ongoing strategy to streamline its operations and provide direct investment opportunities in Angi. Following the distribution, IAC will no longer own shares of Angi capital stock.
This move is a strategic effort by IAC to unlock shareholder value and enable Angi to operate as an independent, publicly-traded company. The transaction is subject to customary conditions, and the specific terms will be more fully described in Angi’s filings with the SEC.
The information in this article is based on a press release statement.
In other recent news, Match Group (NASDAQ:MTCH) announced the promotion of Hesam Hosseini to Chief Operating Officer, effective April 1, as part of a leadership transition. Hosseini, who has been with the company since 2008, will replace Gary Swidler, who will continue as an advisor until July 2025. Swidler’s tenure included taking Match Group public and driving strategic acquisitions like Hinge. Meanwhile, IAC Inc. disclosed financial updates for its subsidiary Dotdash Meredith (NYSE:MDP) Inc. following a corporate restructuring and merger, providing detailed financial statements for the past three years. This disclosure aligns with IAC’s commitment to transparency in financial reporting. Analyst activity has been notable, with KeyBanc raising IAC’s stock price target to $64 and maintaining an Overweight rating after IAC’s recent earnings exceeded expectations. Benchmark, however, reduced its target to $100 but kept a Buy rating, while JMP Securities adjusted its target to $64, retaining a Market Outperform rating. These analysts highlighted IAC’s strategic focus on internal reinvestment and potential for future growth, especially with the anticipated Angi spin-off.
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