InterActive Corp complete spinoff of Match Group

InterActive Corp. (IAC) completed the spinoff of its online dating and hookup platform Match Group (MTCH), last Wednesday. Following the spinoff, shares of IAC were up 3.6% to $106.75, while shares of Match Group were down 2.9% to $102.96.

The spinoff has caused an elimination of Match Group’s dual-class voting structure. While the interest in Match Group that InterActive previously held is now held by the IAC shareholders, directly. Such that, at the close of the transaction, IAC holders each received one IAC common share and 2.1584 Match Group common share.

Also, InterActive Corp. received $838 million in cash which represents $3 per share of Match Group common IAC previously held, as well as the aggregate cash consideration that wasn’t elected by Match Group public shareholders.

The company also added that it expects to receive an additional $1.4 billion from the proceeds of Match Group common shares sale.

“This is just the largest transaction at the core of our strategy through these 25 years,” IAC chairman and senior executive Barry Diller said in a statement.

Last year, both companies announced their plan to separate and will ensure that IAC’s ownership of Match Group was distributed among IAC’s shareholders. It wasn’t until early last Wednesday that the plan finalized.

The separation also included a change in leadership, with Mark Stein and Gregg Winiarski leaving the Match Group board. The company has added four new board members: Stephen Bailey (ExecOnline CEO), Melissa Brenner (NBA’s executive president for digital media), Wendi Murdoch, and Ryan Reynolds. Shar Dubey continues to serve as Match Group’s CEO, while Joey Levin will continue to serve as IAC’s CEO and Match Group’s chairman.

“Most millennials and Gen Z can’t remember what dating was like before the advent of Tinder, OkCupid, and Hinge,” said Hollywood superstar Ryan Reynolds in a statement. “These brands have enormous responsibility and opportunities to affect societies, all embracing new technologies and remaining at the forefront of pop culture. I’m ready to roll up my sleeves and work with the team on their future growth and success.”

Match Group is said to be the largest business spinoff IAC has had all through its 25-years of running, with a market cap of $30 billion, according to IAC.

“This is just the largest transaction at the core of our strategy throughout these 25 years,” IAC chairman Barry Diller said in a statement. “Be opportunistic, be balance sheet conservative, build up enterprises, and when they deserve independence let them have it. Be a conglomerate and an anti-conglomerate, a business model that has been unique to us.”

Since Match Group’s IPO in 2015, the company has doubled in growth and revenue. It’s flagship product, Tinder is rated as the highest-grossing non-gaming app, with a strong global presence and subscriber base. Match Group also owns OkCupid, Hinge, Match, and PlentyOfFish.

IAC is also the parent company of Dotdash, Mosiac Group, HomeAdvisor/Angie’s List ANGI, Vimeo, and Care.com.