IAC/InterActiveCorp (NASDAQ:IACI) is making plans for an IPO, thus fulfilling the vision that Barry Diller had when he decided to syndicate all his dating services into one unit.
IAC announced that the IPO has already received the approval of the board. The transaction is set to be finalized by the end of the year. Additionally, the firm will trade less than 20% of its common stock including its educational and fitness businesses.
Joey Levin was chosen as the company’s new CEO. He was the head of the search and applications divisions which is the largest for the company. Levin takes over after Jeff Kip who resigned from the company in 2013. Since then, IAC has not had CEO. The unit managers have thus been reporting directly to the Barry Diller.
The company’s dating services are expected to generate revenue worth $1.17 billion in the current financial year. Revenues from the dating apps have been projected at $628.8 million. Both are expected to exhibit a 10% increase compared to values obtained in 2014. The study was carried out by research firm IBISWorld. Mr. Diller announced that IAC will not part ways with Match Group entirely. The latter has a 22% share of the market.
Analysts from Wall Street have been anticipating that the company will sell some of its properties since 2013 after IAC compiled its dating businesses under Sam Yagan. Mr. Yagan is a co-founder of OkCupid. He will retain his Chief Executive position after the IPO. IAC is known for creating value through buyouts, and the company will most likely keep using the strategy.
Match Group’s net value is estimated above $6 billion. The firm is therefore well equipped to come up with $600 million by selling a small proportion of its business through the IPO. John Blackledge, an analyst from Cowen and Co, suggests that the company is undervalued. He claimed that the firm is worth $115 per share. The company was valued at $81.19 per share during its close in New York.