IAC's Diller: Pushback over Match spinoff will iron itself out
IAC Chairman Barry Diller told FOX Business that investor pushback over the spinoff of online dating firm Match Group is inevitable but will ultimately get "solved."
“I think they might. There always is push back in these things,” Diller told Maria Bartiromo.
Last week IAC/InterActiveCorp announced plans to spin off all of its shares in Match to IAC stockholders. The company owns more than 80 percent of Match.
In August, the company said it was considering spinoffs of Match and home-improvement platform ANGI Homeservices.
However, it has now filed a proposal to Match, the owner of dating platforms Tinder, PlentyOfFish, OkCupid and Hinge, which would result in two independent companies, according to IAC. Plans for ANGI Homeservices are currently on hold.
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Diller said they would be “crazy” to add debt to Match because it’s a "capable" company and they will all be shareholders.
“Match is a cash flow machine. Its cash flow is huge, like $800 million on $300 billion or something, which is really, extraordinarily high margins,” he said. “So we would not cause ... indebtedness at Match to be beyond any kind of rational threshold.”
Diller added that Match is still in a "ridiculous" phase of growth.
Diller has had a history of spinning off businesses. He said he has spun out 10 companies, including Expedia.