IAC Considers Spinning Off Angi as Dotdash Meredith Boosts Earnings

IAC/InterActiveCorp is exploring the possibility of spinning off its home services unit, Angi Inc., while its leading segment, Dotdash Meredith, accelerates revenue growth. IAC, which owns 85% of Angi, saw its shares rise following the announcement of third-quarter revenue exceeding expectations.

Valued at approximately $1.25 billion, Angi operates an online marketplace connecting consumers with professionals for home improvement and repair services. The company was formed through the merger of Angie's List, acquired by IAC in 2017 for $500 million, and HomeAdvisor, and was rebranded as Angi in 2021.

Despite being IAC's second-largest source of revenue, Angi's revenue has declined for seven consecutive quarters, falling 16% to $296.7 million in the quarter ending September. This decrease is attributed to a drop in service requests and the phased removal of low-margin revenue streams that were previously supported by paid marketing.

IAC CEO Joey Levin indicated that Angi's financial foundation has strengthened and that the potential for increasing shareholder value could be maximized if Angi operates independently. If spun off, it would become the tenth company to separate from IAC, joining the ranks of Vimeo and Match Group, which previously went independent.

IAC reported $938.7 million in revenue for the third quarter, exceeding analyst expectations of $922.2 million as compiled by the London Stock Exchange Group (LSEG). Dotdash Meredith, known for its online publications such as Investopedia and Food & Wine, saw its digital revenue rise 16% to $246.4 million, marking the highest quarterly growth since Dotdash's merger with Meredith in 2021.

Additionally, IAC announced it will begin reporting the financial results of its caregiving services platform, Care.com, as a separate segment starting in the fourth quarter.