Amid pressure from an activist investor, Angie’s List has received a buyout proposal from Barry Diller’s IAC/InterActiveCorp. that values the consumer review site at over $500 million. IAC announced Wednesday after the markets closed that it has proposed to acquire Angie’s List for $8.75 per share. Based on the 58.52 million outstanding shares of the target, IAC’s bid is worth $512 million. The Internet company is seeking to purchase the Indianapolis-based target in an all-cash deal but said it is also open to considering a combination of Angie’s List with IAC’s HomeAdvisor Inc. via a tax-free reorganization, which would allow Angie’s List to remain public. Angie’s List shot up nearly 12% Thursday morning to $8.85 per share, giving the company a $517.9 million market capitalization. Shares of IAC went down about 1.2% to $64.56 a piece, assigning the suitor a $5.4 billion market cap. The bid for the Indianapolis-based consumer review site from IAC comes about five months after activist shareholder TCS Capital Management LLC launched its campaign. TCS Capital Management, which initially revealed its 5.4% stake in July, pushed for the combination between the target and IAC’s HomeAdvisor last month.
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