IAC/InterActive Corp. is moving forward with a spinoff of Match Group Inc. after turning the owner of the Tinder online dating app into one of the best-performing internet stocks.
IAC said Friday it formally recommended the move to a special committee of its board. The tax-free transaction would distribute shares of Match to IAC stockholders, formally separating the two companies. It would also collapse the dual-class common stock structure that has allowed IAC to maintain control.
Match has been one of the star performers in IAC’s portfolio of companies. The shares have gained more than sixfold since its initial public offering in 2015. In the second quarter, Match accounted for 41% of IAC’s total $1.19 billion in revenue.