Barry Diller's IAC on Friday described its proposal to spin off its shares in the Tinder parent Match Group.
The move should see that the IAC, which also controls Vimeo and Angie's list, sells its shares of Match – its most valuable asset – "resulting in two independent public companies," according to IAC.
"Today, IAC proposed an important first step in separating the Match Group from IAC," IAC Chief Joey Levin said in a statement. "The IAC is confident that the proposal communicated to Match Group's special committee provides a strong foundation for Match Group to begin its journey as a thriving, independent company."
The proposal would see Match Group, which is 80% owned by the IAC, scrap its two-class share structure as an independent entity.
The announcement increased the IAC's share price, which traded up 1[ads1].7% Friday afternoon, to $ 228.72.
"It makes sense for both Match and IAC shareholders," Lightshed tells analyst Brandon Ross to The Post. ”[IAC has] acted far less than the sum of the parts. They needed to figure out a way to highlight the value of the assets in their portfolio. "
Ross said he did not believe the IAC had any of the messy Tinder lawsuits it has worked on for spinoff, including a sexual harassment lawsuit against Tinder's former CEO, who recently fired back with his own defamation case against his charges , former Tinder Vice President of Communications Rosette Pambakian.
The IAC is also fighting a case brought by Tinder co-founder Sean Rad and other Tinder co-founders who say the IAC underestimated Tinder during the stock option negotiations – and culled them out of $ 2 billion. IAC, for its part, has sued Rad for stealing company secrets before he was fired.
"If you think about the history of the IAC, this is what they did," Ross said of the Match spinoff. "It's a company that has consistently reinvented itself over time."
IAC, which began in 1995 as Silver King Communications, has previously spun by companies such as Ticketmaster and Expedia. Spinoff, Ross said, will give IAC the flexibility to pursue new innovation.
The company in August had said it explored spinning of both Match Group and ANGI Homeservices. On Friday, Levin noted that the IAC does not "currently expect to address the issue of a spinoff before a Match Group transaction is completed."