Angie's List Parent Considering Spin-Off
NEW YORK - The chief executive officer of IAC (Nasdaq: IAC) in New York says the company is considering a potential spin-off of Colorado-based ANGI Homeservices Inc. (Nasdaq: ANGI), which has a large presence in Indianapolis. The subsidiary was created in 2017 after IAC acquired Indianapolis-based Angie's List and merged the company with HomeAdvisor.
In a letter to shareholders dated Wednesday, Joey Levin said the company is also considering spinning off its other publicly-traded subsidiary, Match Group Inc. (Nasdaq: MTCH), which owns several online dating sites such as Tinder. However, he says a decision is far from being reached.
"We don’t yet know where that process will lead – there’s lots of work to be done and details to consider – and we may ultimately choose to spin off both, one or neither," Levin said in the letter. "This isn’t just legalese to preserve IAC’s options with an expected outcome in mind – we sincerely haven’t yet decided what’s best. But given the heightened interest in the topic among shareholders, we thought it appropriate to keep you apprised of our thinking before any more formal evaluation process is underway, and since that will commence shortly we decided to include that information in this update."
In a statement provided to Inside INdiana Business, ANGI Homeservices CEO Brandon Ridenour said a spin-off from IAC would not be surprising.
"IAC has a long history of incubating and growing companies to great success and we have a great working relationship with IAC," said Ridenour. "They have tremendous expertise that is very valuable. This is a natural course for a company that is a part of IAC. ANGI Homeservices will continue to grow with any outcome. If this does happens, it would be a great opportunity and a proof of our maturity and if we stay as a part of IAC, we will continue to benefit from their expertise."
The letter to shareholders was released the same day as ANGI's quarterly earnings report. The company reported net income of $7.2 million, down from $23 million during the same period the previous year. However, revenues for the company rose 27% to $344 million.