Joey Levine, CEO, IAC.
Anjali Sundaram | CNBC
Barry Diller’s international aviation committee said on Monday its board approved the spinoff Entera home improvement market that the company acquired in 2017.
IAC said it expects the transaction to close in the second quarter of this year. Both companies will release their fourth-quarter results when IAC reports on February 11. Listed Listed on NASDAQ in 2011.
As part of the spinoff, IAC CEO Joey Levin will leave and serve as an advisor to the company. Levin will also serve as Angi’s executive chairman, joining CEO Jeff Kip as senior executive officer of the market, IAC said.
“Joey Levin has been an exemplary leader at IAC and has created tremendous value during his nearly ten-year tenure as IAC CEO,” IAC Chairman Diller said in a statement.
With Levine’s vacancy, IAC will operate without a new chief executive, the company said. IAC’s senior executives will report directly to Diller, as will publisher Dotdash Meredith, the company’s largest business. The remainder of IAC will report to Christopher Halpin, Director of Operations.
IAC has previously adopted a CEOless structure when reorganizing its business. Most recently in 2013, then-CEO Greg Blatt stepped down to serve as chairman of the newly formed Match Group unit.
“Both IAC and Angi have a dynamic future, and I hope to remain an active participant in it,” Levin said in a statement.
As part of the spin-off, IAC shareholders will receive direct ownership of Angi, IAC said.
IAC first announced in November that it was considering spinning off Angi. At the time, the company said Angi’s third-quarter revenue fell 16% annually to $296.7 million. The company attributed the decline to lower sales and marketing spending, which led to fewer service requests and fewer new professional hires.
IAC acquires Angie’s List in a deal valued at more than $500 million. It merged the site with HomeAdvisor, creating a new publicly traded company. Angi’s current market capitalization is approximately $770 million, and IAC owns 85% of its shares.
A spinoff had been considered for several years, but IAC delayed the effort after the Match Group deal closed in 2019. Match owns dating services such as Tinder, Match and Hinge.
IAC is known for incubating businesses and spinning them off into independent companies. Companies such as Expedia, Ticketmaster and LendingTree have done the same.
watch: IAC CEO discusses M&A opportunities in spin-offs from ANGI and AI
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