Analyst David Borun has named IAC as ‘Bull of the Day’ in a post on nasdaq.com.
Match Group is immensely valuable to IAC, providing around 40% of its revenue and 50% of its profit.
IAC owns over 80% of MTCH stock, and has almost total control when it comes to voting and decision making (97% voting rights).
Match Group is strongly associated with IAC in the public eye, with IAC CEO Joey Levin often commenting on the dating market.
The article tells the story of Match Group’s online dating dominance, noting that the conglomerate has 7 million subscribers worldwide. Of these, 3 million are Tinder subscribers.
Historically Match Group has grown through a combination of organic success and acquisitions, and it now serves a diverse user base of singles according to Borun.
IAC’s price recovered fully in the weeks following the Facebook Dating announcement, while Match Group regained around 60-70% of its lost value.
The article concludes: “While the market has an unfortunate tendency to over-react to bad news – especially when it comes from a big name goliath competitor like Facebook – savvy investors stay the course and even add to positions in the face of panic selling.”
Read more here.