Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Equity Bottom-Up

<ul><li>IAC reported its second-quarter results recently and sold off sharply. In my view, the market reaction was overly punitive. While results came in slightly below expectations, they were far from disastrous.</li><li>The stock now looks exceptionally cheap, trading at just 3.4x EBITDA, and I see 43% to 78% upside.</li><li>Over time, I’m confident that management will unlock value—most likely through strategic asset spin-offs.</li></ul>

IAC reported its second-quarter results recently and sold off sharply. In my view, the market reaction was overly punitive. While results came in slightly below expectations, they were far from disastrous.The stock now looks exceptionally cheap, trading at just 3.4x EBITDA, and I see 43% to 78% upside.Over time, I’m confident that management will unlock value—most likely through strategic asset spin-offs.

IAC: Reviewing Q2 and Updating My Valuation

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>The latest quarterly results for IAC Inc. provide a complex picture of the company's financial health and strategic direction.</li><li>Q1 2025 was described as a solid start, underpinned by strategic initiatives and corporate restructuring.</li><li>The company completed the spin-off of Angi to shareholders, marking a significant step as the 10th independent company birthed by IAC.</li></ul>

The latest quarterly results for IAC Inc. provide a complex picture of the company's financial health and strategic direction.Q1 2025 was described as a solid start, underpinned by strategic initiatives and corporate restructuring.The company completed the spin-off of Angi to shareholders, marking a significant step as the 10th independent company birthed by IAC.

IAC: Leveraging First-Party Data & Predictive Analytics To Build A Competitive Edge!

Event-Driven

<ul><li>On March 31, 2025, IAC Inc (IAC) will spin off Angi Inc (ANGI). The first day of trading will be April 1st.</li><li>Transaction Structure: The spin-off is designed to be tax-free, providing IAC shareholders with direct ownership of Angi. This move will eliminate Angi’s dual-class share structure, transitioning to a one share/one vote system.</li><li>Distribution Ratio: IAC shareholders will receive approximately 0.5178 shares of Angi Class A common stock for each IAC share they hold. This ratio accounts for a planned 1-for-10 reverse stock split of Angi’s shares, effective March 24, 2025.</li></ul>

On March 31, 2025, IAC Inc (IAC) will spin off Angi Inc (ANGI). The first day of trading will be April 1st.Transaction Structure: The spin-off is designed to be tax-free, providing IAC shareholders with direct ownership of Angi. This move will eliminate Angi’s dual-class share structure, transitioning to a one share/one vote system.Distribution Ratio: IAC shareholders will receive approximately 0.5178 shares of Angi Class A common stock for each IAC share they hold. This ratio accounts for a planned 1-for-10 reverse stock split of Angi’s shares, effective March 24, 2025.

<ul><li>IAC's recent earnings outlined significant changes and challenges, highlighting both strategic adjustments and the impact of previous business decisions.</li><li>The company has faced considerable difficulties in two of its principal businesses: Angi Inc. and Dotdash Meredith.</li><li>For Angi Inc., the shift from a previous $260 million EBITDA to just $35 million was a primary concern.</li></ul>

IAC's recent earnings outlined significant changes and challenges, highlighting both strategic adjustments and the impact of previous business decisions.The company has faced considerable difficulties in two of its principal businesses: Angi Inc. and Dotdash Meredith.For Angi Inc., the shift from a previous $260 million EBITDA to just $35 million was a primary concern.

IAC Inc.: Can Its Traffic Growth & Monetization Efforts Drive Sustained Revenue Growth?

<ul><li>InterActiveCorp (IAC) recently discussed its third-quarter 2024 performance in a call that highlighted several strategic and financial developments.</li><li>As one of the essential takeaways, IAC announced that it is contemplating spinning off Angi Inc., which, if executed, will be its first spin-out in four years.</li><li>This planned spin-off aims to create two separate focused companies, allowing Angi to stand independently with improved liquidity and a tailored strategy for growth.</li></ul>

InterActiveCorp (IAC) recently discussed its third-quarter 2024 performance in a call that highlighted several strategic and financial developments.As one of the essential takeaways, IAC announced that it is contemplating spinning off Angi Inc., which, if executed, will be its first spin-out in four years.This planned spin-off aims to create two separate focused companies, allowing Angi to stand independently with improved liquidity and a tailored strategy for growth.

IAC Inc.: An Insight Into Its Strategic Growth Landscape & Major Growth Drivers

United States

IAC Inc operates as a holding company. The Company, through its subsidiaries, provides media and Internet services. IAC serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

IAC (IAC US)

IAC: Reviewing Q2 and Updating My Valuation

IAC reported its second-quarter results recently and sold off sharply. In my view, the market reaction was overly punitive. While results came in...

Richard Howe

IAC: Leveraging First-Party Data & Predictive Analytics To Build A Competitive Edge!

The latest quarterly results for IAC Inc. provide a complex picture of the company's financial health and strategic direction. Q1 2025 was...

Baptista Research

Weekly Update (ANGI, IAC, SNRE)

On March 31, 2025, IAC Inc (IAC) will spin off Angi Inc (ANGI). The first day of trading will be April 1st. The spin-off is designed to be tax-free...

Richard Howe

IAC Inc.: Can Its Traffic Growth & Monetization Efforts Drive Sustained Revenue Growth?

IAC's recent earnings outlined significant changes and challenges, highlighting both strategic adjustments and the impact of previous business...

Baptista Research

IAC Inc.: An Insight Into Its Strategic Growth Landscape & Major Growth Drivers

InterActiveCorp (IAC) recently discussed its third-quarter 2024 performance in a call that highlighted several strategic and financial...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)