IAC and Match Group have officially completed their separation, meaning the online dating umbrella now stands alone as an independent company.
Match Group will no longer operate under a dual-class voting structure and all of the shares that were previously owned by IAC are now in possession of existing IAC investors. IAC received $838 million in cash and is expecting to be paid an additional $1.4 billion from the sale of shares of “New” Match.
The holding company is no stranger to floating its subsidiaries once it feels they can exist independently. However, with a current market cap of $30 billion, Match Group is the largest company to separate from IAC in its 25 year history.
IAC Chairman Barry Diller said in a statement: “Be opportunistic, be balance sheet conservative, build up enterprises and when they deserve independence let them have it. Be a conglomerate and an anti-conglomerate, a business model that has been unique to us.”
The big development also comes with several changes to Match Group’s Board of Directors. IAC’s CSO Mark Stein and General Counsel Gregg Winiarski have both stepped down from their position, but CEO Joey Levin retains his position as Executive Chairman.
Stein and Winiarski have been replaced by ExecOnline CEO Stephen Bailey, the NBA’s executive president for digital media Melissa Brenner, entrepreneur Wendi Murdoch and actor Ryan Reynolds.
Reynolds added in his own statement: “Most millennials and Gen Z can’t remember what dating was like before the advent of Tinder, OkCupid and Hinge.
“These brands have enormous responsibility and opportunities to affect societies, all while embracing new technologies and remaining at the forefront of pop culture. I’m ready to roll up my sleeves and work with the team on their future growth and success.”
The proposed spin was first announced more than nine months ago, but some investors are obviously unhappy with the finalised deal. A group of Match Group investors have filed a lawsuit in the past couple of days alleging that it could end up costing them millions of dollars.
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