Tags: angies list | iac | company | homeadvisor

Angie's List, IAC Deal: Media-Internet Company Buys Consumer-Review Site

Image: Angie's List, IAC Deal: Media-Internet Company Buys Consumer-Review Site
www.angieslist.com

By    |   Wednesday, 03 May 2017 05:50 AM

Angie's List will be purchased by IAC/InteractiveCorp as part of an agreement that will combine the consumer-recommendation website with IAC's online-review network to create a new company that will be publicly traded.

The new company, which will be called ANGI Homeservices Inc., will bring customers of both businesses together to one online service, Joey Levin, IAC chief executive officer, told Bloomberg.

"The combined business, which will maintain both Angie's List and HomeAdvisor brands, will offer unparalleled scale and product breadth to match homeowners with service professionals in the $400 billion domestic home services market," a statement from IAC said Monday.

"The transaction has been approved by the boards of directors of both companies, and is expected to close in the fourth quarter of 2017," the statement continued.

Angie's List investors will be allowed to pick either one Class A common share of the new company or $8.50 in cash for each share they own — with a cash payout capped at $130 million, Bloomberg reported. The deal, at the $8.50 per share mark, values Angie's List at $500 million, a 44-percent premium over the stock closing price of $5.89 Monday, the business news site noted.

"This is now the 10th publicly traded company to emerge from what was one company, in 1995, with $48 million in sales and a market capitalization of $201 million — the beginning of IAC," Barry Diller, chairman if IAC, said in the company's statement.

"Today, the equity value of the companies created is in excess of $43 billion, with a compounded annual return of 13.3 percent. While it's hard to predict the future, I think we'll just keep going," Diller continued.

IAC made a hostile bid for Angie's List in November 2015 for $512 million but the company called the bid "dramatically" too low, CNN Money reported. The website, though, had tumbled since to 45 percent.

Angie's List lost almost $8 million in 2016 and is expected to report a quarterly loss on Wednesday, wrote CNN.

IAC is the majority owner of the online dating service Match, the video-sharing site Vimeo, and news sites like The Daily Beast, according to CNN. IAC often buys companies and package them into a holding company to spin them off.

Diller is also chairman of Expedia, one of IAC spinoffs which has numerous other travel sites under its umbrella, stated CNN.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
TheWire
Angie's List will be purchased by IAC/InteractiveCorp as part of an agreement that will combine the consumer-recommendation website with IAC's online-review network to create a new company that will be publicly traded.
angies list, iac, company, homeadvisor
392
2017-50-03
Wednesday, 03 May 2017 05:50 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved