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international aviation committee On Monday it said it was exploring a spinoff Enteran online platform that connects consumers with a marketplace of home improvement service providers (such as electricians and landscapers) in their area.
Angi shares rose 10% in after-hours trading on Monday.
IAC CEO Joey Levin wrote in a letter to shareholders on the occasion of the company’s third-quarter earnings that the company is considering spinning off Angi, which would result in a distribution of its shares to shareholders. IAC owns 85% of Angi, which also includes Home services marketplaces Handy and HomeAdvisor.
IAC said it currently has no specific timetable for the spin-off, but if it decides to move forward with the plan, it expects the transaction to close by the end of the company’s second quarter.
“With significant progress made and upcoming developments, our business has real advantages,” Levine wrote. “Angi’s economic fundamentals continue to strengthen, and we suspect Angi’s best chance of achieving upside for shareholders may be as a company.” independent company.”
Levine went on to say that Angi is “healthy, profitable, and returning to revenue growth.” The company’s revenue fell 16% annually to $296.7 million in the third quarter, which Angi attributed to lower sales and marketing expenses, which led to fewer service requests and fewer new professional hires.
IAC acquired Angi in 2017 and has considered spinning off the business for years. The company delayed the effort in 2019 as it completed competition groupwhich owns dating services like Tinder, Match and Hinge.
IAC is known for incubating businesses and spinning them off into independent companies. This is also done Expedia.comTicketmaster and LendingTree, etc.
In IAC’s financial report, the company also announced the results of its Care.com division for the first time. IAC acquired Care.com, an online marketplace for consumers to find child care, elder care, pet care and other services, in 2019 for nearly $500 million.
Care.com’s third-quarter revenue fell 6% annually to $95.7 million. Over the last 12 months, Care.com’s adjusted EBITDA was $46 million.
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