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

Event-Driven

<ul><li>Angi Inc. (“Angi”) is set to be spun off from IAC Inc. (IAC owns 85% of the company) on March 31, 2025 following a multi-year turnaround that restored profitability and improved cash flow.</li><li>The first day of regular way trading will be April 1, 2025.</li><li>Angi operates the largest digital marketplace for home services in the U.S., connecting homeowners with contractors across Angi’s Ads and Leads platform (formerly HomeAdvisor/Angie’s List) and Services (pre-priced jobs fulfilled via Angi’s network), with an international segment spanning Europe and Canada.</li></ul>

Angi Inc. (“Angi”) is set to be spun off from IAC Inc. (IAC owns 85% of the company) on March 31, 2025 following a multi-year turnaround that restored profitability and improved cash flow.The first day of regular way trading will be April 1, 2025.Angi operates the largest digital marketplace for home services in the U.S., connecting homeowners with contractors across Angi’s Ads and Leads platform (formerly HomeAdvisor/Angie’s List) and Services (pre-priced jobs fulfilled via Angi’s network), with an international segment spanning Europe and Canada.

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>Our regression analysis suggests YELP’s 2025 revenue could be as high as $1,568 million if the statistical relationship with META holds.</li><li>In contrast, consensus for YELP is $1,480 million, while guidance is $1,470-1,485 million.</li><li>Our regression analysis with GOOG suggests a more modest revenue estimate of $1,499 million for 2025, which is also above the guide.</li></ul>

Our regression analysis suggests YELP’s 2025 revenue could be as high as $1,568 million if the statistical relationship with META holds.In contrast, consensus for YELP is $1,480 million, while guidance is $1,470-1,485 million.Our regression analysis with GOOG suggests a more modest revenue estimate of $1,499 million for 2025, which is also above the guide.

Yelp, Inc. - WTR Revenue Estimates Above Consensus; Initiating Coverage

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>Yelp Inc.'s latest earnings report for the third quarter of 2024 presents a mixed picture with certain strong elements as well as some ongoing challenges.</li><li>On the positive side, Yelp achieved record net revenue of $360 million, reflecting a 4% increase year-over-year.</li><li>The company successfully maintained strong profitability with a net income margin of 11% and an adjusted EBITDA margin of 28%.</li></ul>

Yelp Inc.'s latest earnings report for the third quarter of 2024 presents a mixed picture with certain strong elements as well as some ongoing challenges.On the positive side, Yelp achieved record net revenue of $360 million, reflecting a 4% increase year-over-year.The company successfully maintained strong profitability with a net income margin of 11% and an adjusted EBITDA margin of 28%.

Yelp Inc.: The Acquisition of RepairPal & Auto Services Expansion! - Major Drivers

<ul><li>Yelp Inc. recorded a mixed performance in the second quarter of 2024, highlighting several strategic initiatives and financial metrics that provide a nuanced picture of its current positioning and future prospects.</li><li>The company achieved a 6% year-over-year increase in net revenue, amounting to $357 million, surpassing its own forecast marginally.</li><li>This growth was underpinned by the introduction of over 20 new features and updates, emphasizing Yelp’s continued focus on a product-led strategy.</li></ul>

Yelp Inc. recorded a mixed performance in the second quarter of 2024, highlighting several strategic initiatives and financial metrics that provide a nuanced picture of its current positioning and future prospects.The company achieved a 6% year-over-year increase in net revenue, amounting to $357 million, surpassing its own forecast marginally.This growth was underpinned by the introduction of over 20 new features and updates, emphasizing Yelp’s continued focus on a product-led strategy.

Yelp Inc.: Will The Streamlined AI Implementations in AdTech & Search Pay Off? - Major Drivers

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Webtoon Entertainment / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/webtoon-entertainment-inc" target="_blank" data-smartkarma-citation="entities:43652:1" rel="noopener">Webtoon Entertainment (WBTN US)</a> raised around US$315m in its US IPO, after pricing the deal at the top of the range at US$21/share.</li>
<li>Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.</li>
<li>In our previous notes, we talked about the company’s historical performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we talk about the trading dynamics.</li>
</ul>



Webtoon Entertainment (WBTN US) raised around US$315m in its US IPO, after pricing the deal at the top of the range at US$21/share.
Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.
In our previous notes, we talked about the company’s historical performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we talk about the trading dynamics.


Webtoon Entertainment IPO Trading - Not Cheap Given the Lack of Growth

United States

Yelp Inc. operates a social networking, user review, and local search web site. The Company provides the site as a guide for online search capabilities for its visitors to find reviews and details about local businesses. Yelp provides listings for businesses throughout the United States and Canada.

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

Yelp Inc (YELP US)

ANGI Spin-off Deep Dive

Angi Inc. (“Angi”) is set to be spun off from IAC Inc. (IAC owns 85% of the company) on March 31, 2025 following a multi-year turnaround...

Richard Howe

Yelp, Inc. - WTR Revenue Estimates Above Consensus; Initiating Coverage

Our regression analysis suggests YELP’s 2025 revenue could be as high as $1,568 million if the statistical relationship with META holds.

Water Tower Research

Yelp Inc.: The Acquisition of RepairPal & Auto Services Expansion! - Major Drivers

Yelp Inc.'s latest earnings report for the third quarter of 2024 presents a mixed picture with certain strong elements as well as some ongoing...

Baptista Research

Yelp Inc.: Will The Streamlined AI Implementations in AdTech & Search Pay Off? - Major Drivers

Yelp Inc. recorded a mixed performance in the second quarter of 2024, highlighting several strategic initiatives and financial metrics that...

Baptista Research

Webtoon Entertainment IPO Trading - Not Cheap Given the Lack of Growth

Webtoon Entertainment (WBTN US) raised around US$315m in its US IPO, after pricing the deal at the top of the range at US$21/share.

Ethan Aw

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)