Technology suppress a delay company IAC/InterActiveCorp announced Thursday it has agreed to spin off all of its shares of online dating company Match Group.
Portions of Match jumped more than 5% in premarket trading on the news.
Match shareholders will receive one equity of New Match and $3 per share in consideration, while IAC will receive $3 per share in cash.
“We’ve long said IAC is the ‘anti-conglomerate’ – we’re not empire builders,” Barry Diller, chairman and higher- ranking executive of IAC, said in a statement. “We’ve always separated out our businesses as they’ve grown in scale and maturity and soon Match Accumulation, as the seventh spin-off, will join an impressive group of IAC progeny collectively worth $58 billion today.”
IAC bring up in October it had submitted a proposal to members of Match’s board of directors that would result in the full separation of Match from IAC.
Alliance has carved out a foothold in the online dating market, largely due to solid growth in its youth-oriented dating app, Tinder. It also incorporates other dating services like Match, Hinge, and OKCupid.
The Match spinoff has been approved by the boards of both companies, but yet requires the approval of shareholders, among other stakeholders.
—CNBC’s Annie Palmer and Reuters contributed to this record.