IAC To Spin Off Match.com, Stock Nears All-Time High
IAC/InterActiveCorp (NASDAQ: IACI) will spin off its Match Group, which includes dating sites Match.com, OurTime, OKCupid and Tinder, as well as educational sites like The Princeton Review.
The stock is set to open at an all-time high after gaining more than 7 percent in pre-market trading on the news.
The Match Group will issue less than 20 percent of its equity through the IPO. Sam Yagan and Greg Blatt will remain the CEO and chairman, respectively, of the new entity. The IPO is expected to be complete in the fourth quarter this year.
On the announcement, IAC Chairman Barry Diller said, "I'm not a believer in simply agglomerating assets in perpetuity. I've long felt that as entities grow into size and maturity it's healthy to give them separation and independence from a mother church."
Diller pointed to the fact that IAC properties have grown into seven public companies with a market cap of $44 billion.
"As for IAC," Diller added, "we now have a group of assets with great potential and, with the appointment of Joey Levin as CEO, a leader who has the youth, energy and ability to develop them in hopefully the same growth track as has been demonstrated throughout our twenty year history."
Year-to-date, IAC has gained more than 27 percent as of Wednesday's closing price of $77.26. The stock may open above $82 per share. The stock's previous all-time high was $80.64.
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