IAC has taken the first steps to spin off Match Group as its own independent company, by issuing a proposal of what it anticipates the process will look like.
As the dating company is already a publicly traded company, its dual-class stock structure will need to be gotten rid of, thus creating a single stock class. The IAC’s 80% ownership of Match Group stock will be redistributed to current shareholders.
The board of directors and a variety of other stakeholders still need to officially approve the plan, but the proposal is a significant first move to set the wheels in motion.
CEO Joey Levin explained in a statement: “Today IAC proposed an important first step in the separation of Match Group from IAC.
“IAC is confident that the proposal communicated to the Match Group special committee provides strong footing for Match Group to begin its journey as a thriving, independent company.”
IAC’s share price immediately jumped by 6% after the announcement, while the news had the opposite effect on Match Group, which suffered a fairly minor 2.3% dip.
Levin first hinted in August that plans were being made and also mentioned a potential spin off of a second subsidiary ANGI Homeservices. However, he confirmed today that attention will not be turned to ANGI until the Match Group separation is completed.
In the past, IAC has successfully spun several of its other incubated companies, including Expedia, Ticketmaster and LendingTree.
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