New York-based IAC confirmed it has reached an agreement "providing for the full separation of Match from the remaining businesses of IAC" that gives it the nod to spin off its 81% stake in Match Group, the operator of Tinder, Match, PlentyOfFish, and OkCupid.
Under terms of the split-up, IAC will distribute its Match Group shares to IAC holders, creating two independent public companies. The separation, which was initially announced in October, will be structured to be tax-free to IAC, Match, and their respective shareholders. It is expected to close in the second quarter of 2020.
IAC shareholders will still retain ownership of Match Group while using the proceeds to “pursue new opportunities and enabling management to focus on undervalued assets within IAC,” the company said.
"We've long said IAC is the 'anti-conglomerate' – we're not empire builders,” IAC Chairman Barry Diller said in a statement. “We've always separated out our businesses as they've grown in scale and maturity and soon Match Group, as the seventh spinoff, will join an impressive group of IAC progeny collectively worth $58 billion today.”
Match Group is best known as the operator of online dating and hookup apps Match and Tinder, though it also operates other matchmaking platforms including OkCupid and Hinge.
Shares of IAC were up 6.67%, or $14.75 a share, at $235.96 in morning trading on Thursday. Match Group was up 5.73%, or $4.08 a share, at $75.32
Update: IAC and Match Group completed the full separation on July 1, 2020.