IAC has released its Q3 financial results the day after subsidiary Match Group published its own.
The holding company reported total revenue of $1.25 billion, a 13% year-on-year increase. However, adjusted EBITDA saw a decline over the 12 month period, falling from $267.3 million to $266 million.
The firm estimates that year-long adjusted EBITDA will come in between $975 million and $995 million.
In a letter to shareholders, CEO Joey Levin gave some more details about the plans to spin off Match Group as a standalone business. The online dating company was responsible for more than 40% of IAC’s quarterly revenue.
Levin explained: “That process will take longer and involve more advisors than any of us would like, but if we reach agreement on deal terms and complete the transaction, our shareholders will separately own shares in two public companies, one of which owns MTCH’s business and the other a ‘New’ (and slimmer) IAC. We’re excited about the prospects for both securities.”
Once Match Group becomes independent its stock will be redistributed among IAC holders. Current estimates suggest they will receive 2.6 Match Group shares for every one IAC share.
Levin hopes that neither company will have any value destroyed during this process.
IAC’s stock price dropped by 9% following Match Group’s financial results. It has since recovered slightly and sits at $212.58, with a market value of just under $18 billion.
Visit the IAC website here.