IAC Considers Relinquishing Match Group Control

IAC is contemplating whether or not it might be time to give up control of Match Group in order to streamline the company.

The announcement came in a letter to investors which accompanied IAC’s Q2 financial results. It is also considering releasing online home services marketplace ANGI, another of its publicly traded brands.

The total revenue for Q2 came in at $1.19 billion, a 12% year-on-year increase, of which Match Group accounted for 41%. Adjusted EBITDA fell by 2% from 2018 to $259 million.

IAC CEO Joey Levin said in the quarterly shareholder letter: “[IAC is] considering spinning our two large publicly traded subsidiaries. We sincerely haven’t decided yet what’s best.

“We have done this a lot of times throughout history. We are not empire builders.”

He explained that the company always plans to build up its businesses to a point where they are established enough to stand on their own. At that point the board will discuss if they should be let it go in order to focus funds elsewhere.

IAC’s share price grew by 15% following the news, and its market cap now sits at $21.7 billion.

During an interview with Cheddar last year, Levin was asked if it was possible that Tinder might be floated on a stock exchange by itself in the future. He insisted that there is no set formula at IAC for that type of business, but the firm is “constantly considering those kinds of opportunities.”

Match Group also published its financial results this week, reporting 9.1 million premium subscribers across all of its brands. The stock reacted positively, with share prices jumping by 20% and peaking at $94.50, the highest point in its history.

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