IAC exploring spinoff of 85% ownership in Angi to shareholders

IAC (IAC) said in a letter to shareholders: “We are again at one of those inflection points, and here’s what we plan to do: We are exploring a spinoff of our 85% ownership in Angi (ANGI) to IAC shareholders, which would make Angi the 10th fully standalone public company to come from IAC; We have decided to report Care.com as a separate segment in our financials beginning with the fourth quarter of 2024 to showcase the earnings of the leading consumer marketplace for care – in the last twelve months, that was $46 million of Adjusted EBITDA; In the event of an Angi spin, we will be a smaller IAC, and our corporate costs will need to reflect that. We’ll be reviewing corporate costs with an Angi spin-off in mind; We will opportunistically analyze strategic sales of IAC businesses to simplify IAC and free up capital for better value creation, with the expectation that Dotdash Meredith (“DDM”) and MGM would comprise the core of IAC should an Angi spin occur; and We will continue to actively evaluate new areas to deploy our capital, but attractively valued assets are not easy to acquire in this current market environment. We remain patient for the right opportunity, and the bar on new acquisitions remains high. Of course, the most significant step outlined above, though perhaps not the most surprising, is the potential separation of Angi from IAC. In a consistent pattern of anti-conglomerating, Angi would join a long list of businesses built up over time and spun off by IAC. Strategically, operationally, and financially, Angi is now ready to stand separately with a more liquid equity currency and the ambition to win, while IAC continues to simplify and focus. I deeply believe in the breakout potential of the Angi business, and, while we haven’t yet delivered it durably inside of IAC, our shareholders would be able to participate directly in Angi’s bright future on its own. Plus, with increased liquidity in the stock, we expect Angi to have a more attractive currency to optimize its business – whether for category consolidation, capital formation, or employee compensation.”