IAC/InterActiveCorp (NASDAQ/IACI) is spinning off its popular dating service, after announcing plans to hold The Match Group IPO later this summer.
Recently, the media and Internet company announced plans to pursue an initial public offering (IPO) of its The Match Group division later this year. (Source: IAC, last accessed July 7, 2015.)
The Match Group consists of a number of dating, education, and fitness businesses. Its brands include Match.com, Tinder, and OkCupid. The firm is expected to issue less than 20% of its common stocks in the IPO, with IAC holding the remaining stakes.
The Match Group enjoyed solid growth recently. In the first quarter of 2015, revenue from the Match Group surged 13% year-over-year. Excluding the impact of foreign exchange, the growth was 19%. The company expects revenue growth to be in the high-teens year-over-year in the remaining quarters of this year. (Source: IAC, last accessed July 7, 2015.)
The move is in line with IAC’s strategy. Over the years, IAC has spun off a number of businesses, such as Expedia Inc. (NASDAQ/EXPE) and TripAdvisor Inc. (NASDAQ/TRIP).
“As many know from our actions over the last 20 years, I’m not a believer in simply agglomerating assets in perpetuity,” said IAC’s Chairman and Senior Executive Barry Diller. “I’ve long felt that as entities grow into size and maturity it’s healthy to give them separation and independence from a mother church.”
The press release also announced some changes to the executive team. Joey Levin, the former CEO of its Search and Applications business, was named CEO of IAC and joined its Board of Directors. IAC’s Chief Financial Officer Jeff Kip resigned from the company, but would remain with IAC for an interim period to help with the transition.
More information about the Match Group IPO will be available when the company submits IPO filings to the Securities and Exchange Commission (SEC).