NEW YORK and DALLAS, July 1,
2020 /PRNewswire/ -- IAC (NASDAQ: IAC) and Match Group
(NASDAQ: MTCH) today announced the successful completion of the
separation of Match Group from the remaining businesses of IAC. As
a result of the separation, Match Group's dual class voting
structure has been eliminated and the interest in Match Group
formerly held by IAC is now held directly by IAC's shareholders.
Starting today, "new" IAC will trade under the symbol "IAC" and
"new" Match Group under the symbol "MTCH."
In the quarter century since Barry
Diller took the helm of IAC—then a collection of television
stations called Silver King Communications worth $250 million—the company has grown into 10
separate publicly-traded businesses, including Match Group. IAC and
its progeny are collectively worth nearly $60 billion today.
The transaction allows a smaller, more nimble IAC to shape a new
generation of category leaders—from both the seeds existing within
IAC's portfolio and the pursuit of entirely new opportunities.
Match Group's combination of category leadership, growth, and
cash flow is virtually unrivaled; as a standalone company Match
Group now benefits from increased strategic flexibility, enhanced
trading liquidity and the eligibility for index inclusion. With a
market cap of $30 billion, Match
Group is the largest business IAC has separated in its 25-year
history. Since Match Group's initial public offering in 2015, the
company has more than doubled subscribers and revenue. Match
Group's flagship product, Tinder, is the highest grossing
non-gaming app worldwide, with a global presence.
"This is just the largest transaction at the core of our
strategy throughout these 25 years," said Barry Diller, Chairman and Senior Executive of
IAC. "Be opportunistic, be balance sheet conservative, build up
enterprises and when they deserve independence let them have it. Be
a conglomerate and an anti-conglomerate, a business model that has
been unique to us."
"Back to work again," said Joey
Levin, CEO of IAC and Executive Chairman of Match Group,
"this is the fun part."
Said Match Group CEO Shar Dubey,
"This is a momentous occasion for Match Group, as we are the
largest IAC success story to date. Our team is phenomenal, and we
are ready to continue growing our businesses, investing in new
bets, and expanding our footprint in new markets. We have a proven
track record here, and we look forward to taking it to the next
As of today, IAC and Match Group each stand on their own as
distinct and thriving companies, both well positioned for future
growth and organized to continue building.
Upon close of the transaction, IAC shareholders received one
share of "new" IAC common stock and 2.1584 shares of "new" Match
Group common stock for each share of IAC common stock held
immediately prior to the transaction. In addition, IAC received
$838 million of cash representing
$3 per share of Match Group common
stock previously held by IAC and the aggregate cash consideration
not elected by Match Group public shareholders. IAC expects to
receive an additional $1.4 billion in
proceeds from the sale of shares of New Match common stock, which
is expected to close later today.
Pre-transaction shareholders of Match Group (other than IAC)
received one share of "new" Match Group common stock plus either
(i) $3.00 per share in cash or (ii)
0.0337 of a share of "new" Match Group common stock worth
$3.00, based on a Match Group stock
price of $88.9466 calculated in
accordance with the transaction agreement, for each share of Match
Group common stock held immediately prior to the transaction.
IAC (NASDAQ: IAC) builds companies. We are
guided by curiosity, a questioning of the status quo, and a desire
to invent or acquire new products and brands. From the single seed
that started as IAC over two decades ago have emerged 10 public
companies and generations of exceptional leaders. We will always
evolve, but our basic principles of financially-disciplined
opportunism will never change. IAC today operates Vimeo, Dotdash
and Care.com, among many others, and also has majority ownership
ANGI Homeservices, which includes HomeAdvisor, Angie's List and
Handy. The Company is headquartered in New York City and has business operations and
satellite offices worldwide.
About Match Group
Match Group (NASDAQ: MTCH), through
its portfolio companies, is a leading provider of dating products
available globally. Our portfolio of brands includes
Tinder®, Match®, Meetic®,
OkCupid®, Hinge®, Pairs™,
PlentyOfFish®, and OurTime®, as well as a
number of other brands, each designed to increase our users'
likelihood of finding a meaningful connection. Through our
portfolio companies and their trusted brands, we provide tailored
products to meet the varying preferences of our users. Our products
are available in over 40 languages to users all over the world.
Certain statements and information in this communication may be
deemed to be "forward-looking statements" within the meaning of the
Federal Private Securities Litigation Reform Act of 1995.
Forward-looking statements may include, but are not limited to,
statements relating to IAC's and Match's anticipated financial
performance, objectives, plans and strategies, and all statements
(other than statements of historical facts) that address
activities, events or developments that IAC and Match intend,
expect, project, believe or anticipate will or may occur in the
future. These statements are often characterized by terminology
such as "believe," "hope," "may," "anticipate," "should," "intend,"
"plan," "will," "expect," "estimate," "project," "positioned,"
"strategy" and similar expressions, and are based on assumptions
and assessments made by IAC's and Match's management in light of
their experience and their perception of historical trends, current
conditions, expected future developments, and other factors they
believe to be appropriate. IAC and Match undertake no duty to
update or revise any such statements, whether as a result of new
information, future events or otherwise. Forward-looking statements
are not guarantees of future performance. Whether actual results
will conform to expectations and predictions is subject to known
and unknown risks and uncertainties, including: risks and
uncertainties discussed in the joint proxy statement/prospectus and
other reports that IAC and Match have filed with the SEC;
competition; Match's ability to maintain user rates on its
higher-monetizing dating products; the companies' ability to
attract users to their products and services through cost-effective
marketing and related efforts; changes in the companies'
relationship with (or policies implemented by) Google; foreign
currency exchange rate fluctuations; the companies' ability to
distribute their products through third parties and offset related
fees; the integrity and scalability of the companies' systems and
infrastructure (and those of third parties) and the companies'
ability to adapt their systems and infrastructure to changes in a
timely and cost-effective manner; the companies' ability to protect
their systems from cyberattacks and to protect personal and
confidential user information; risks relating to certain of the
companies' international operations and acquisitions; the impact of
the outbreak of the COVID-19 coronavirus, or any subsequent or
similar epidemic or pandemic; the risks inherent in separating
Match from IAC, including uncertainties related to, among other
things, the costs of the separation, whether the parties will be
able to realize expected benefits of the separation on the
anticipated timeline or at all, any litigation arising out of or
relating to the proposed transaction, the expected tax treatment of
the transaction, and the impact of the transaction on the
businesses of IAC and Match; and other circumstances beyond IAC's
and Match's control. You should not place undue reliance on these
forward-looking statements. For more details on factors that could
affect these expectations, please see IAC's and Match's filings
with the SEC, including the joint proxy statement/prospectus.
IAC Investor Relations
Match Group Investor Relations
IAC Corporate Communications
Match Group Corporate Communications
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SOURCE IAC; Match Group