IAC CEO Joey Levin to step down as it spins off home services unit Angi (updated)

People Incorporated

13/01/2025 22:09

(Adds share movement in paragraph 2)
       Jan 13 (Reuters) - IAC  IAC.O  said on Monday longtime
boss Joey Levin will step down as CEO after the spinoff of its
majority stake in home services marketplace Angi  ANGI.O  as the
media and internet company looks to focus on Dotdash Meredith,
its largest business.
    Shares of Angi jumped 16% in extended trading, while IAC's
rose 2.4%. 
    Levin will make a transition to the role of advisor for IAC
and become executive chairman of Angi.    
    IAC said it does not intend to appoint a new CEO, but will
have its leadership including finance chief Christopher Halpin
and Chief Legal Officer Kendall Handler reporting directly to
chairman Barry Diller.
    Under Diller, IAC is known for its strategy of building
businesses and subsequently spinning them off into independent
companies.
    It has spun off its stake in the likes of dating app group
Match  MTCH.O  and online video platform Vimeo  VMEO.O .
    Angi's market valuation stands at about $776 million as per
Monday's closing price, down from $1.25 billion in November when
IAC first announced its intention to distribute its 85% stake in
the company to its shareholders.
    The spinoff, which is expected to be tax free, marks the
tenth standalone public company to fully separate from IAC. 
    Levin joined IAC in 2003 and has served as CEO since 2015.
He guided the company through its initial IPO and subsequent
spin-off of Match Group, as well as Vimeo. 
    Angi is IAC's second-largest sales stream and runs a digital
platform that links home service professionals with consumers
for various tasks, from repairs to home remodeling.
    In the past several quarters, the company has seen reduced
demand for its services due to fewer service requests and is
also eliminating low-margin revenue streams that were acquired
through paid marketing. 
    The spin off is expected to close in the first half of 2025.
 

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Shailesh Kuber)
 ((HarshitaMary.Varghese@thomsonreuters.com;))