Angie's List turns down IAC's second offer to buy it - this time for $512 million
Flickr/David Goehring
It looks like a second attempt by IAC to buy Angie's List wasn't a match.
In an announcement in BusinessWire, Angie's List, the online marketplace and reviews site for independent contractors, revealed it had been approached earlier this month by IAC - who owns Tinder - to buy the company at $8.75 per share, a $512 million offer. The Angie's List board of directors has formally and unanimously decided to turn down the offer, however.
"That IAC chose to announce its proposal on the same day as our public launch of LeadFeed is a testament to the strength of our evolving product and services offering," Scott Durchslag, Angie's List President and Chief Executive Officer, said in a letter published by the company. "The Board believes that it should have the opportunity to fully evaluate our Profitable Growth Plan and should share that plan with shareholders before reaching a decision as to whether to engage in a transaction with IAC or any other party."
The last time IAC attempted to buy Angie's List, which operates as a marketplace and user-generated local listing and review site, was in October for $8.50 per share. IAC's portfolio includes a wide array of other internet brands - including Angie's List rivals such as HomeAdvisor - and it could have used the hiring site to build out their platform.
Angie's List could also be holding out for a better offer from IAC. This announcement comes as IAC's subsidiary, Match Group, which includes dating apps like Tinder, is filing to go public.
Angie's List stock has fallen since going public in 2011 with an opening price of $15.80 per share. Thanks to growing threats like Amazon and other competitors, its stock has been trading well below its initial offering, most recently trading at $9.56 as the company struggles to scale its operations.
You can read the full text of the letter published in BusinessWire from Angie's List to IAC CEO, Joey Levin, below: