Angi Shares Surge As IAC Announces Spin-Off Plans

Angi Inc ANGI shares are trading higher in Monday’s after-hours session after IAC IAC announced plans to spin off its stake in Angi.

What Happened: After the market close on Monday, IAC announced its board approved a plan to spin off its full stake in Angi to IAC shareholders.

As part of the change, IAC CEO Joey Levin will leave his role and become an advisor to the company. Levin will also be named executive chairman of Angi.

“Joey Levin has wanted a store of his own for some time and the spin-off of Angi affords him this opportunity. Although IAC will relinquish his services as CEO, we expect that he will continue to advise us for many years,” said Barry Diller, senior executive and chairman of IAC.

The spin-off transaction is expected to be tax free and will give IAC shareholders direct ownership of Angi, resulting in IAC and Angi becoming wholly separate entities. IAC also expects the spin-off to be in the form of one share/one vote common stock of Angi, eliminating Angi’s dual-class structure.

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The spin-off is expected to allow IAC management to focus on its broader portfolio as well as new growth opportunities. As a fully independent company, Angi is expected to benefit from a more attractive equity currency to accelerate growth.

The transaction is expected to close in the first half of 2025, but the company noted that it will not occur before March 31.

IAC and Angi will both report fourth-quarter financial results after the market close on Feb. 12.

ANGI Price Action: Angi shares were up 12.2% in after hours, trading at $1.76 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.