#USA #New York #Angi #IAC #Joey Levin

IAC's Bold Move to Spin Off Angi

In a significant strategic decision, IAC (NASDAQ: IAC) has announced plans to spin off its full stake in Angi (NASDAQ: ANGI), a notable leader in the home services marketplace. This transition reflects IAC’s ongoing commitment to evolving its business structure while providing shareholders with direct ownership of Angi, thus enhancing the operational focus of both companies.

On January 13, 2025, IAC's Board of Directors approved the spin-off, with expectations that it will be finalized in the first half of 2025, following necessary regulatory approvals. This transaction not only promises to leverage IAC's diverse portfolio but also aims to enhance Angi's position in the marketplace.

Leadership Transformation
Alongside the spinoff, IAC has initiated a reorganization of its leadership. Joey Levin, who has been at the helm of IAC, will step down from his role as CEO and transition into an advisory capacity. He will take on the role of Executive Chairman at Angi, where he will work closely with Angi CEO Jeff Kip. This leadership change is anticipated to create a dedicated environment for Angi to thrive under Levin's experienced guidance.

In commenting about the transition, Barry Diller, IAC’s Senior Executive and Chairman, highlighted Levin's crucial contributions to IAC during his nearly decade-long tenure. He stated, "Joey Levin has wanted a store of his own for some time and the spin-off of Angi affords him this opportunity. We expect that he will continue to advise us for many years." This collaborative leadership approach is intended to drive Angi's growth as it embarks on its journey as IAC's tenth fully independent entity.

Strategic Focus for Angi
The impending spin-off of Angi allows for a tax-free transaction expected to provide IAC shareholders with direct ownership of the newly independent Angi. The separation will convert Angi’s current dual-class share structure into a straightforward one-share/one-vote model, thereby enhancing transparency and governance. This strategic differentiation is designed to improve Angi's equity attractiveness, empowering the company to accelerate growth and streamline its decision-making processes.

By shedding dual-class shares, Angi expects to have more flexibility in capital formation and potential mergers and acquisitions (M&A). This newfound independence is crucial for Angi, as it allows the company to concentrate solely on its operations, cultivate its unique strategic priorities, and ultimately align its capital structure with its evolving business needs.

Looking Forward
As the spin-off progresses, both IAC and Angi remain optimistic. Each entity anticipates allocating resources effectively toward their specific strategies. With the evolving market dynamics for home services, Angi stands positioned to capitalize on its expertise and industry-leading network to meet homeowner needs, continue helping local businesses grow, and tackle new challenges head-on.

The completion of the spin-off is contingent on several conditions, including final approval from the IAC Board and obtaining a favorable tax opinion. IAC and Angi are prepared to post their respective fourth-quarter financial results on February 11, 2025, followed by a conference call that will provide further insights into their business trajectories and outlook.

In summary, as IAC initiates this transformative journey with Angi, the company will benefit from a more focused approach while paving the way for growth that aligns with evolving consumer demands. Joey Levin’s leadership at Angi will serve as a significant advantage as the company embarks on this new chapter, setting the stage for what promises to be an exciting future.