Angie's List Spikes in Pre-Market Trading, May Seek Buyer - TheStreet

SAN FRANCISCO (TheStreet) -- Investors gave Angie's List (ANGI) - Get Report  a thumbs-up review on its reported decision to hire bankers to explore strategic options -- including a sale of the company.

Shares of the consumer services listing and reviews company were climbing 18% to $7.54 in pre-market trading following a Financial Times report on the company's plans. Indianapolis-based Angie's List closed Tuesday at $6.37.

Angie's List has reportedly held talks with some prospective buyers, but it remains to be seen if the company will ultimately hit the go button on a buyout, the FT reported. The newspaper didn't identify its source for the report nor the bank or bankers said to have been hired by Angie's List. A company spokeswoman, Cheryl Reed, in a phone interview, told TheStreet.com: "We don't comment on rumors."

Angie's List has faced difficult times since it went public in late 2011 at $13 per share, reported the Indianapolis Business Journal. Earlier this year, for example, the company recorded a $18.4 million second-quarter loss that missed Wall Street's expectations, according to the publication. Additionally, Angie's List has yet to post a profit and is planning to cut 97 employees from its sales staff.

Angie's List has also faced analyst downgrades, in part because estimates on earnings before interest, taxes, depreciation and amortization were too high

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.