Investing.com -- Shares of Angi Inc (NASDAQ: ANGI) surged 9.6% in pre-open trading Tuesday following the announcement from IAC (NASDAQ: IAC) that it plans to spin off its full stake in the home services platform to IAC shareholders. The strategic move is expected to grant Angi full independence and comes alongside a leadership reorganization, with Joey Levin transitioning from IAC CEO to become an advisor and Executive Chairman of Angi.
The spin-off, which is anticipated to be tax-free, is aimed at providing IAC shareholders direct ownership of Angi, leading to the separation of the two entities. This corporate maneuver is part of a broader strategy to enable both IAC and Angi to concentrate on their respective growth opportunities and operational priorities. The expected completion of the spin-off is in the first half of 2025, with no actions to take place prior to March 31, 2025.
As a result of the spin-off, Angi is poised to leverage a more attractive equity currency to fuel growth through potential mergers and acquisitions, capital formation, and talent acquisition. The transaction also aims to simplify IAC's structure, enhancing its capacity to pursue acquisitions and incentivize employees. Both companies have reaffirmed their financial expectations for the fourth quarter of 2024.
Citi analyst Ygal Arounian commented on the development, stating, "For Angi, despite our reservations of it as a standalone company, we view the continued involvement of Mr. Levin positive as this leaves the two key architects of its turnaround plan in place (along with CEO Jeff Kip)."
The announcement comes as part of a broader leadership reorganization within IAC. Joey Levin will step down as CEO of IAC and take on the role of Executive Chairman at Angi, working closely with Angi CEO Jeff Kip. Post-transition, IAC will not appoint a new CEO; instead, CFO & COO Christopher Halpin and Chief Legal Officer Kendall Handler will report directly to Barry Diller, Senior Executive and Chairman of IAC.
IAC and Angi are scheduled to post their respective fourth quarter results after market close on Tuesday, February 11, 2025, with a conference call to discuss the results slated for the following morning. The live audiocast and replay of the call will be available to the public through the investor relations sections of both the IAC and Angi websites.
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