Following its Spinoff of IAC Stock Slips After Earnings

As InterActiveCorp (IAC) recently finalized the distribution of its majority stake in to shareholders, its shares were trading lower on Monday, following the first earnings report.

IAC is an American holding company that owns a variety of internet businesses. The company posted revenue of $726.4 million, which was up 5% from a year earlier adjusted for the transaction with Match.

With its largest single asset being its 85% stake in ANGI Home-services, it revealed revenue of $375.1 million for the quarter which ended in June, this was up 9% from what was reported a year earlier, and was ahead of the Street at $363.4 million. But shares from ANGI were down 6.3% to $14.52 after hours.

IAC’s video production tools business, Vimeo, had a revenue of $67.3 million, up 47%. The company’s search business which includes, had its revenue at $133.3 million, down 32%. For Dotdash which is a collection of web content companies, it had a revenue of $44.6 million, up 18%. For other emerging segments of the company, there was a revenue of $108.1 million, up 60%.


The recent policy that was adopted by IAC, would see that it provides monthly updates on its business lines. As disclosed by ANGI, it showed that its July revenue was up 7%, down from 15% in May and 14% in June. This could be seen as for the pressure on its shares.

For Vimeo, revenue in July was up 40%, 22% at Dotdash. It was down 26% for search and up 76% for others which are emerging.

It was reported on Monday that IAC disclosed an investment of about $1 billion to acquire a 12% stake in MGM Resorts which is a casino company. 35% of all hotel rooms on the Las Vegas Strip are owned by MGM, which is widely known for its hotel-casino properties.

According to IAC, the investment “presented a ‘once in a decade’ opportunity for IAC to own a meaningful piece of a pre-eminent brand in a large category with great potential to move online.”

CEO Joey Levin and founder Barry Diller said in a letter that was issued to shareholders at the company that “IAC has always been opportunistic with its capital, and if ever there was a time, this moment is unique. We believe we can generate compelling returns for our shareholders and hope our expertise will be additive to MGM’s opportunities, but even if we never advance our involvement from here, the value was too compelling to ignore. Having taken this step, we have a very long-term view of this investment and will be open to all the opportunities it presents along the way.”

From the start of the year through Friday, MGM shares had fallen 42%.

Shares from IAC were down 3.5% to $126.70 and the stock as well dipped 1.3% in the regular session. For MGM resorts it rallied 13.8% in regular trading and had slipped 1.2 after hours.

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