Angi Shares Surge As IAC Announces Spin-Off Plans

The home services platform, Angi (NASDAQ: ANGI), has seen a surge in its share price following the announcement by its parent company, IAC (NASDAQ: IAC), of plans to spin off Angi as an independent entity. The spin-off, expected to be tax-free, will give IAC shareholders direct ownership of Angi, resulting in both companies becoming wholly separate entities.



The spin-off transaction is expected to close in the first half of 2025, with the completion subject to certain conditions, including final approval by the IAC Board of Directors and receipt of a tax opinion. As part of the reorganization, Joey Levin, the current CEO of IAC, will transition to become the Executive Chairman of Angi, working alongside Angi CEO Jeff Kip to shape the company's next chapter.

The spin-off will eliminate Angi's dual-class structure, converting it into one share/one vote common stock. This move is expected to enhance corporate governance and potentially improve market valuation for both companies. Historically, IAC's spin-offs, such as Match Group and Vimeo, have led to improved operational execution and market multiples expansion, suggesting that the spin-off of Angi could follow a similar trajectory.

The strategic rationale behind the spin-off is compelling: Angi gains independence for faster decision-making and access to capital markets, while IAC streamlines its structure to pursue new opportunities. The tax-free nature of the spin-off preserves shareholder value, and the timing aligns with Angi's maturation as a business. Joey Levin's transition to Executive Chairman of Angi ensures continuity while bringing focused leadership to drive growth in the fragmented $600 billion home services market.

The planned spin-off of Angi from IAC represents a major strategic restructuring with profound implications for both companies. The elimination of Angi's dual-class structure and conversion to one share/one vote common stock will significantly enhance corporate governance and potentially improve market valuation. This move follows IAC's proven playbook of incubating and spinning off successful businesses, as demonstrated with Match Group and Vimeo.

The strategic rationale is compelling: Angi gains independence for faster decision-making and access to capital markets, while IAC streamlines its structure to pursue new opportunities. The tax-free nature of the spin-off preserves shareholder value, and the timing aligns with Angi's maturation as a business. Joey Levin's transition to Executive Chairman of Angi ensures continuity while bringing focused leadership to drive growth in the fragmented $600 billion home services market.

This corporate restructuring could unlock significant shareholder value through multiple mechanisms. The elimination of the dual-class structure should reduce the 'holding company discount' typically applied to IAC's valuation, while giving Angi better access to capital markets for potential M&A or organic growth initiatives. With a market cap of $775.7 million, Angi will emerge as a pure-play home services platform with enhanced strategic flexibility.

Historical precedent from IAC's previous spin-offs suggests potential upside for shareholders. The simplified ownership structure and dedicated management focus typically lead to improved operational execution and market multiples expansion. The timing of the spin-off in H1 2025 provides a clear catalyst for value realization, while maintaining tax efficiency for shareholders.