IAC Weighs Spin-Off of Angi Inc., Angi Stock Dips After Mixed Earnings
In a significant move that sent Angi Inc. (ANGI) shares lower in after-hours trading, IAC announced its consideration of spinning off its ownership stake in the home services platform. The potential divestiture would transform Angi into a fully independent entity, allowing it to operate separately from IAC, the parent company that has nurtured and managed Angi as part of its portfolio of digital and media businesses.
This news comes on the heels of Angi’s third-quarter earnings report, which presented a mixed picture. While the company reported quarterly earnings of $0.07 per share, exceeding analyst expectations, its revenue fell short, registering at $296.7 million against an analyst consensus estimate of $296.517 million. This represents a 20.21% decrease compared to sales of $371.837 million in the same period last year.
Despite the recent dip in revenue, Angi remains a prominent player in the home services space. Since its inception in 1995, Angi has connected millions of homeowners with skilled professionals, establishing itself as a comprehensive service for homeowners. The platform offers a range of tools, from hiring and cost research to project inspiration, making it a one-stop shop for home improvement needs. Angi’s extensive network boasts over 150 million users, supporting thousands of small businesses and home service professionals across the nation.
IAC’s potential divestiture of Angi is in line with its history of building and spinning off successful brands. Previously, the company has launched prominent companies such as Match Group and Vimeo, demonstrating its expertise in nurturing and enabling independent growth. The announcement has sparked speculation about the future of Angi and the potential benefits of operating independently.
To delve deeper into both companies’ third-quarter results and address investor inquiries, Angi and IAC will host a conference call on Tuesday, November 12, at 8:30 a.m. ET. Investors and industry watchers alike will be closely monitoring the call for further insights into the potential spin-off and the strategic direction of both companies.
