IAC is consciously uncoupling with its stable of dating websites and apps.
Match Group, which owns Match.com and popular dating apps Tinder and Hinge, is being spun off from IAC’s remaining websites. IAC, the tech and media holding company that owns a controlling stake in Match, originally announced it intended to spin off Match earlier this year.
IAC (IAC) and Match Group will become “two independent thriving public companies,” according to an announcement IAC (IAC) made Thursday. The spinoff gives IAC (IAC) shareholders direct ownership of Match Group stock, and it provides IAC (IAC) with capital to pursue new opportunities and enables management to focus on IAC (IAC)’s undervalued assets, the company said.
Shares of Match (MTCH) soared more than 5% and IAC’s stock rose 1% in premarket trading. The transaction is expected to close in the second quarter of 2020.
Match Group’s stock has grown more than than 65% for the year, partially boosted by user and revenue growth from Tinder, Hinge and OKCupid.
IAC chairman Barry Diller explained that his company is as “‘anti-conglomerate” with the intention of creating profitable companies with the intention of being spun off. He has a history of incubating businesses such as Expedia (EXPE), HSN and Ticketmaster before spinning them out into separately traded independent businesses.
“We’ve always separated out our businesses as they’ve grown in scale and maturity and soon Match Group, as the seventh spin-off, will join an impressive group of IAC progeny collectively worth $58 billion today,” he said in a statement Thursday.
IAC still owns Angie’s List, digital video website Vimeo and a plethora of media websites including The Daily Beast and College Humor.