IAC/InterActiveCorp made a preliminary proposal to the special committee of disinterested directors formed by the Match Group Inc. board for a transaction that would result in a complete spinoff of Match Group from the remaining businesses of IAC.
The proposed transaction, structured to be tax-free to the companies and their respective stockholders, will see IAC effectively distributing its shares in Match Group to IAC's stockholders, resulting in two independent public companies.
The transaction will eliminate the dual-class common stock structure at Match Group, with all pretransaction stockholders of Match Group and IAC receiving a single class of "one share/one vote" capital stock of the resulting new Match Group company.
Under the proposal, among other things, the new Match Group would become responsible for specified liabilities of IAC, and it will retain certain real estate assets currently owned by IAC.
The company announced in August that it was considering a separation of Match Group.
