IAC's Leadership Transition: Joey Levin Steps Down as CEO

IAC's Strategic Shift and Leadership Change

IAC recently announced a significant transition in its leadership, with Joey Levin stepping down as CEO as the company prepares to spin off its majority stake in the well-known home services marketplace, Angi. This move aligns with the media and internet firm's strategy to concentrate its efforts on Dotdash Meredith (NYSE: MDP), IAC's largest business segment.

Joey Levin’s New Role

As part of this transition, Levin will change his role to advisor for IAC and will become the executive chairman of Angi. This ensures a continuity of leadership during the pivotal change while allowing Levin to guide Angi’s growth as an independent entity.

The Legacy of IAC and Barry Diller

IAC has long been recognized for its unique strategy of building businesses before eventually spinning them off into independent companies. Under the leadership of billionaire Barry Diller, the firm has successfully divested from various ventures, including the dating app group Match and the online video platform Vimeo (NASDAQ: VMEO).

Understanding Angi's Current Market Valuation

Angi's market valuation has seen a significant decline, currently around $776 million, reflecting market dynamics since IAC's announcement in November regarding its intention to distribute its 85% stake in the platform to shareholders. This spinoff is anticipated to be tax-free and represents IAC's tenth standalone public company to completely separate from its parent firm.

Changes in IAC’s Management Structure

IAC has decided against appointing a new CEO following Levin's departure. Instead, the finance chief, Christopher Halpin, along with Chief Legal Officer Kendall Handler, will report directly to chairman Diller. This management structure aims to streamline decision-making processes during this transitional phase.

Joey Levin’s Career at IAC

Levin’s journey with IAC began in 2003, and he has played a pivotal role as CEO since 2015. He successfully navigated the company through its initial public offering and the subsequent spin-offs of major businesses like Match Group (NASDAQ: MTCH) and Vimeo. His leadership will be missed as the company enters this new chapter.

Angi’s Business Outlook

Angi holds the position of IAC's second-largest sales stream, offering a digital platform that connects consumers with home service professionals for an array of tasks such as repairs and remodeling. Despite its vital role, the company has recently faced challenges, including reduced demand for its services, which stemmed from a decline in service requests. Consequently, Angi is reevaluating its revenue streams, particularly focusing on eliminating those that have low profit margins and were previously acquired through paid marketing.

Looking Ahead: The Spin-Off Timeline

The anticipated spinoff of Angi is expected to close in the first half of 2025, which marks a crucial milestone for both IAC and Angi as they strive to redefine their operations and market presence.

Frequently Asked Questions

Why is Joey Levin stepping down as CEO of IAC?

Joey Levin is stepping down to take on a new role as advisor while transitioning to the executive chairman of Angi following its spin-off from IAC.

What strategic focus will IAC have after the spin-off?

After the spin-off, IAC aims to focus more on Dotdash Meredith, enhancing its operations in that segment.

How has Angi's market valuation changed?

Angi's market valuation has declined to approximately $776 million since the announcement of the spin-off.

When is the anticipated completion date for the Angi spin-off?

The Angi spin-off is expected to be finalized in the first half of 2025.

Who will be leading IAC after Levin's departure?

After Levin's departure, Christopher Halpin and Kendall Handler will report directly to chairman Barry Diller, maintaining the company's management structure.

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