(Reuters) -IAC said on Monday longtime boss Joey Levin will step down as CEO after the spinoff of its majority stake in home services marketplace Angi as the media and internet company looks to focus on Dotdash Meredith, its largest business.
Shares of Angi jumped 16% in extended trading, while IAC’s rose 2.4%.
Levin will make a transition to the role of advisor for IAC and become executive chairman of Angi.
IAC said it does not intend to appoint a new CEO, but will have its leadership including finance chief Christopher Halpin and Chief Legal Officer Kendall Handler reporting directly to chairman Barry Diller.
Under Diller, IAC is known for its strategy of building businesses and subsequently spinning them off into independent companies.
It has spun off its stake in the likes of dating app group Match and online video platform Vimeo.
Angi’s market valuation stands at about $776 million as per Monday’s closing price, down from $1.25 billion in November when IAC first announced its intention to distribute its 85% stake in the company to its shareholders.
The spinoff, which is expected to be tax free, marks the tenth standalone public company to fully separate from IAC.
Levin joined IAC in 2003 and has served as CEO since 2015. He guided the company through its initial IPO and subsequent spin-off of Match Group, as well as Vimeo.
Angi is IAC’s second-largest sales stream and runs a digital platform that links home service professionals with consumers for various tasks, from repairs to home remodeling.
In the past several quarters, the company has seen reduced demand for its services due to fewer service requests and is also eliminating low-margin revenue streams that were acquired through paid marketing.
The spin off is expected to close in the first half of 2025.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shailesh Kuber)
