UPDATE 1-IAC/InterActiveCorp makes unsolicited bid for Angie's List
(Adds details, shares, background)Nov 11 (Reuters) - Barry Diller's IAC/InterActiveCorp
made an unsolicited bid to buy Angie's List Inc
for about $512 million in cash, nearly a month after an
activist investor urged the reviews website operator to explore
strategic alternatives.IAC's $8.75 per share offer represents a premium of 10.5
percent to Angie's stock's closing price on Wednesday.Shares of Angie's List, which operates a website that allows
users to review local businesses, were trading at $8.85 after
market, indicating that investors were expecting a better offer.IAC, which owns Investopedia, video-sharing website Vimeo
and mobile dating app Tinder, said it was taking its offer
public after failing to develop "meaningful dialogue" with
Angie's List for "many months".
IAC said it was also willing to consider a combination of
Angie's List with its HomeAdvisor business through a tax-free
stock-for-stock exchange.TCS Capital Management LLC, which revealed last month it
owned about 9 percent of Angie's List, had urged the company to
combine with an industry player such as HomeAdvisor.
HomeAdvisor is an online marketplace for matching consumers
with pre-screened home services professionals in the United
States, as well as in France and the Netherlands.Angie's List has been losing market share and subscribers as
it charges customers membership fees to access reviews and
ratings on its site that Yelp Inc, TripAdvisor Inc
and others provide for free.
The company is also facing new competition from the Google
unit of Alphabet Inc and Amazon.com Inc, as
well as upstarts such as Thumbtack.Angie's List, which named a former Best Buy Co Inc
executive as its CEO in September, has been shifting from its
origins as an online review site to a marketplace that helps
customers find everything from chimney sweepers to plumbers.Up to Wednesday's close, the company's stock had risen about
37 percent since TCS Capital disclosed the stake.
(Reporting By Lehar Maan and Kshitiz Goliya in Bengaluru;
Editing by Sriraj Kalluvila)