Shares of Angie's List (ANGI - Get Report) , a US-based website containing crowd-sourced reviews of local businesses, were climbing over 40% during after-hours trading on Monday after the Wall Street Journal reported that IAC Corp. (IAC - Get Report) is buying the platform.
IAC, owned by entertainment and media mogul Barry Diller, will pay $8.50 a share, or more than $500 million, for Angie's List, according to the Journal.
Angie's List has been working with Allen & Co. LLC and Bank of America Merrill Lynch on explore strategic alternatives since Nov. 1.
The internet company has struggled with its turnaround efforts and has faced pressure from disgruntled investors to explore a sale. The strategic review also comes almost a year after the company turned down a $512 million, $5.75 per share, buyout offer from IAC.
IAC is a leading media and Internet firm with more than 150 brands and products.
IAC intends to combine Angie's List with its HomeAdvisor site and create a new publicly traded company.
In March 2016, the Indianapolis company settled with activist investor TCS Capital Management LLC by adding three dissident-backed directors to the board including firm founder and president Eric Semler.
Angie's List shares were up about 42% in after-hours trading to $8.35 per share, after closing Monday at $5.89 per share. IAC's shares were flat after hours.
Don't miss these top stories on TheStreet:
- Tesla's Elon Musk Thinks You'll Travel to Work Like This in the Future and It's Nuts
- Shark Tank Star Kevin O'Leary on Why Tesla Shares Are Headed for an Epic Crash
- As Apple Prepares to Report Earnings, It's Not Just All About the iPhone Anymore
- Something Big Is Happening on Amazon That Should Terrify Macy's, Target and Sears
- Unfortunately for Chipotle, the Price for One of Its Most Beloved Ingredients Is Soaring
- Should You Hold in May Until a Summer's Day?