In a strategic move that has sent Angi's stock soaring, IAC announced its plan to spin off its full stake in the home services platform to its shareholders. The decision, approved by IAC's board, marks a significant restructuring for both companies, with the spin-off expected to close in the first half of 2025, no sooner than March 31. This move will see Angi become IAC's 10th fully independent company, allowing it to operate with greater autonomy and flexibility in the market.

As part of the reorganization, Joey Levin, who has been at the helm of IAC as CEO, will step down from his role to become an advisor to IAC and take on the position of Executive Chairman at Angi. Levin's transition is seen as a pivotal move to guide Angi's next chapter, working closely with Angi's CEO, Jeff Kip. Levin's leadership at IAC has been praised by Barry Diller, IAC's Senior Executive and Chairman, who highlighted Levin's significant contributions and the value he created during his tenure.

The spin-off is structured to be tax-free, providing IAC shareholders with direct ownership of Angi shares. This transaction will eliminate Angi's dual-class structure, converting it to a one share/one vote common stock, which is expected to enhance corporate governance and potentially improve market valuation. The move is anticipated to benefit both companies by allowing IAC to focus on its broader portfolio and new growth opportunities, while Angi gains the ability to pursue its own strategic initiatives, including mergers and acquisitions, capital formation, and talent acquisition.

Following the announcement, Angi's shares experienced a notable increase, rising 16% to $1.81 in after-hours trading, while IAC's shares also saw a rise of 3.62% to $43. This positive market reaction reflects investor confidence in the strategic direction of both companies post-spin-off.

IAC's decision to not appoint a new CEO following Levin's departure underscores a shift in leadership structure, with key executives such as Christopher Halpin and Kendall Handler reporting directly to Diller. This move aligns with IAC's history of reorganizing its businesses without a CEO, a strategy that has been employed successfully in the past.

Both IAC and Angi have affirmed their financial expectations for the fourth quarter of 2024, with results to be posted on February 11, 2025, followed by a joint conference call on February 12. This upcoming financial disclosure will be closely watched by investors as they assess the impact of the spin-off on both companies' performance.

The spin-off of Angi represents a continuation of IAC's strategy of incubating and spinning off successful businesses, a model that has previously led to the creation of independent entities like Match Group and Vimeo. As Angi embarks on its journey as a standalone company, the market will be keen to see how it leverages its independence to capture growth in the $600 billion home services market.