IAC/InterActiveCorp on Thursday unveiled plans to pursue an
initial public offering of its Match Group division, which includes
dating sites Match.com and Tinder.
Shares in the media conglomerate gained 7% on the news.
IAC also named Joey Levin, the former head of its search and
application business, as chief executive of IAC.
"Over the last two decades, IAC and its progeny have grown into
seven separate public companies with a current shareholder value of
over $44 billion," Chairman Barry Diller said.
IAC said it expects Match Group to issue less than 20% of its
common stock in the IPO, which it expects to complete during the
fourth quarter.
Match Group, the second-largest of IAC's four business segments,
includes Match.com, Tinder and OkCupid. The Princeton Review,
Investopedia and the Daily Beast also reside under the Match Group
banner.
In its most recent quarter, the segment reported that revenue
climbed 13% from the year-earlier period to $239.2 million,
representing about 31% of IAC's top line, as paid subscribers to
its dating sites grew 16%. Still, profit in the segment fell
36%.
Sam Yagan, co-founder of OkCupid, will remain chief executive of
Match Group.
IAC shares, up 16% over the past three months, rose to $83.20
premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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