The publication Fortune has posted details on IAC’s decision to spin Match Group, the parent company to dating brands including Tinder, Hinge and POF.
The move was confirmed this week, along with some terms of the separation. Match Group will purchase two properties in Los Angeles with a combined value of $100+ million as part of the deal.
It will also take on a portion of IAC’s company debt, which some commentators claim will present a challenge in the short term.
Ivan Feinseth of Tigress Financial Partners told the magazine: “Match continues to grow very strongly, specifically from its various other dating site subscriptions and advertising revenue.
“I believe both stocks are also up because Barry Diller has shown a successful history of incubating and spinning off companies.
“(…) Usually spin offs or separating companies does unlock value for each company to be measured on their own specific attributes and growth.”
The spin is expected to close in Q2 2020. Match CEO Mandy Ginsberg said in an official company statement that the company has “grown up tremendously” under the tutelage of IAC.
The confirmation comes just weeks after Blackstone Group, a large American multinational, announced its acquisition of Bumble’s parent MagicLab.
Bumble predicts that it will acquire three million new users this winter, benefiting from industry-wide activity spikes including ‘Dating Sunday’.
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