IAC Plans Match Group IPO

IAC/InterActiveCorp on Thursday unveiled plans to pursue an initial public offering of its Match Group division, which includes dating sites Match.com and Tinder.

Shares in the media conglomerate gained 7% on the news.

IAC also named Joey Levin, the former head of its search and application business, as chief executive of IAC.

"Over the last two decades, IAC and its progeny have grown into seven separate public companies with a current shareholder value of over $44 billion," Chairman Barry Diller said.

IAC said it expects Match Group to issue less than 20% of its common stock in the IPO, which it expects to complete during the fourth quarter.

Match Group, the second-largest of IAC's four business segments, includes Match.com, Tinder and OkCupid. The Princeton Review, Investopedia and the Daily Beast also reside under the Match Group banner.

In its most recent quarter, the segment reported that revenue climbed 13% from the year-earlier period to $239.2 million, representing about 31% of IAC's top line, as paid subscribers to its dating sites grew 16%. Still, profit in the segment fell 36%.

Sam Yagan, co-founder of OkCupid, will remain chief executive of Match Group.

IAC shares, up 16% over the past three months, rose to $83.20 premarket.

Write to Lisa Beilfuss at [e-mail]

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