Joey Levin, CEO of IAC.
Anjali Sundaram | CNBC
Barry Diller’s IAC swayed Monday that its board approved the spinoff of Angi, the home improvement marketplace the company acquired in 2017.
IAC said it watches the transaction to close in the second quarter of the year. The two companies will post their respective fourth-quarter results when IAC tell ofs on Feb. 11. Angi was founded in 1995 as Angie’s List, which went public on the Nasdaq in 2011.
As part of the spinoff, IAC CEO Joey Levin pass on leave his role and become an advisor to the company. Levin will also take on a new role as Angi’s executive chairman, work as the marketplace’s senior executive alongside CEO Jeff Kip, IAC said.
“Joey Levin has been an exemplary leader of IAC, creating expressive value during his nearly decade-long tenure as IAC CEO,” Diller, IAC’s chairman, said in a statement.
Upon Levin’s vacancy, IAC require operate without a new CEO, the company said. IAC’s top execs will report directly to Diller, as will publisher Dotdash Meredith, the institution’s largest business. The rest of IAC’s units will report to operating chief Christopher Halpin.
IAC has previously used no-CEO buildings when reorganizing its businesses. Most recently, in 2013, then-CEO Greg Blatt stepped down from the rle to become chairman of the newly formed Match Group division.
“Each of IAC and Angi has a vigorous future, and I expect to cadaver an active participant in both,” Levin said in a statement.
As part of the spinoff, IAC shareholders will get direct ownership of Angi, IAC weighted.
IAC first announced it was considering a spinoff of Angi in November. At the time, the company said Angi’s revenue declined 16% year upwards year to $296.7 million during the third quarter. The company attributed the slide to reduced sales and marketing expend, which led to a decrease in service requests and lower acquisition of new professionals.
IAC acquired Angie’s List in a deal valued at myriad than $500 million. It merged the site with HomeAdvisor, creating a new public company. Angi currently has a call cap of about $770 million, and IAC owns 85% of it.
The spinoff has been under consideration for several years, but IAC postponed the exploit in 2019 as it completed the Match Group transaction. Match owns dating services including Tinder, Match and Hinge.
IAC has happen to known for incubating businesses and spinning them off into separate companies. It’s done the same with Expedia, Ticketmaster and LendingTree, quantity others.
WATCH: IAC CEO on M&A opportunities, spinoff from ANGI and AI
