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Internet media and services provider IAC/InterActiveCorp (IAC - Get Report)  formally proposed to spin out its 81%-held Match Group (MTCH - Get Report) dating-service subsidiary.

The preliminary proposal, made to a panel of independent directors at Match, follows IAC's August statement that it was mulling a separation of Match Group.

Under the terms, IAC would distribute its Match Group shares to IAC holders, creating two independent public companies. The separation would be structured to be tax-free to IAC, Match and their respective shareholders.

The proposal "provides strong footing for Match Group to begin its journey as a thriving, independent company," IAC Chief Executive Joey Levin said in a statement. 

The plan also would eliminate the dual-class common-stock structure at Match. All pre-transaction holders of Match would receive a new class of one-share-one-vote stock in Match, IAC said in the Friday statement.

IAC said its proposal carries a number of conditions, including, among others, a positive recommendation by the Match special committee and approval by its board, any required approvals by stockholders of IAC and Match, and approval by the disinterested holders of Match. 

And as for IAC's stake in ANGI Homeservices (ANGI - Get Report) , for which IAC said in August it was also considering a spinout, Levin said, "We don't currently expect to turn our attention to [that question] until a Match Group transaction has been completed."

IAC shares were rising 2% to $229.51, Match Group shares fell 2.6% to $74.08, and ANGI Homeservices shares climbed 5.9% to $7.17.