Angi's home improvement marketplace is considering a spinoff of its IAC (Internet of Things) business.

• Angi, a home improvement services platform, is being considered for a spinoff by IAC, which holds an 85% stake in the company.
• The Angi spinoff is expected to happen by the end of IAC's second quarter, although the company has not specified a specific timeline.
• Joey Levin informed shareholders in a letter that there is significant potential for growth in the business.

On Monday, it was announced that the company is considering launching a spinoff of HomeBid, an online platform that connects consumers with a marketplace of home improvement service providers in their area, such as electricians and landscapers.

On Monday, Angi's stock price decreased by almost 8% in after-hours trading, while IAC's shares experienced a gain of over 1%.

IAC CEO Joey Levin wrote in a letter to shareholders that coincided with the company's third-quarter earnings release, stating that the company is considering a spinoff of Angi, which would result in its stake being distributed to shareholders. IAC owns 85% of Angi, which also includes home services marketplaces Handy and HomeAdvisor.

If IAC decides to proceed with the plan, a transaction is expected to occur by the end of the second quarter.

""We have made significant progress and have promising developments ahead, and we believe that Angi's best chance to capitalize on this potential lies as a standalone company," Levin wrote."

LSEG reported that Angi's earnings per share were 7 cents, exceeding the consensus expectation of zero cents per share.

Incubating businesses and spinning them off into separate companies is a well-known practice of IAC, which has been applied to companies such as eBay, Ticketmaster, and LendingTree.

During the third quarter, Care.com's revenue decreased by 6% compared to the same period the previous year, totaling $95.7 million. In the past 12 months, Care.com recorded an adjusted EBITDA of $46 million.

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