The spinoff of Angie, the home improvement marketplace that the business purchased in 2017, was approved by the board, according to Barry Diller’s IAC on Monday.
According to IAC, the deal should finalize in the year’s second quarter. When IAC reports on February 11, the two businesses will release their own fourth-quarter results. Established as Angie’s List in 1995, Angi went public on the Nasdaq in 2011.
In the spinoff, Joey Levin, the CEO of IAC, will step down and join the firm as an advisor. According to IAC, Levin will also assume a new position as executive chairman of Angi, working alongside CEO Jeff Kip as the marketplace’s senior executive.
According to a statement from IAC chairman Diller, Joey Levin has been an excellent leader of the organization, adding substantial value over his almost ten years as CEO.
IAC stated that it will function without a new CEO following Levin’s departure. Both the company’s largest business, publisher Dotdash Meredith, and IAC’s senior executives will answer directly to Diller. Christopher Halpin will be the operations chief for the remaining IAC units.
In the past, IAC has reorganized its businesses using no-CEO frameworks. The most recent was when former CEO Greg Blatt resigned in 2013 to take on the position of chairman of the newly established Match Group division.
“I anticipate continuing to be an active participant in both IAC and Angi, as each has a bright future,” Levin said in a statement.
IAC stated that Angi will be directly owned by its shareholders as part of the separation.
In November, IAC originally declared that it was thinking about creating a spinoff of Angi. According to the firm at the time, Angi’s third-quarter revenue dropped 16% year over year to $296.7 million. The company blamed the decline on lower sales and marketing expenditures, which in turn resulted in fewer service requests and fewer new hires.
In a deal for over $500 million, IAC purchased Angie’s List. It created a new public firm by merging the website with HomeAdvisor. IAC presently owns 85% of Angi, which has a market valuation of roughly $770 million.
Although the spinoff has been considered for a number of years, IAC put the project on hold in 2019 after completing the Match Group purchase. Tinder, Match, and Hinge are among the dating services owned by Match.
IAC has established a reputation for fostering enterprises and then turning them into independent businesses. The same has been done, among others, with LendingTree, Ticketmaster, and Expedia.
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