IAC on Thursday confirmed it has reached an agreement for “the full separation of Match from the remaining businesses of IAC" that gives it the ok to spin off its 81% stake in Match Group, the operator of Tinder, Match, PlentyOfFish and OkCupid.
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 in a statement.
It’s good news for both companies, who have done extraordinarily well in launching and growing businesses that connect, ehem, people.
"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 spin-off, will join an impressive group of IAC progeny collectively worth $58 billion today.”
The transaction, which is expected to be tax free, is expected to close in the second quarter of 2020.
Match Group is best known as the operator of online dating and hook-up apps Match and Tinder, though it also operates other matchmaking platforms including OkCupid and Hinge.
IAC has stakes in the likes of Match, but also runs Vimeo and Dotdash, and has stakes in ANGI Homeservices (ANGI) - Get ANGI Homeservices Inc Class A Report, which includes HomeAdvisor, Angie's List and Handy.