Barry Diller’s IAC/InterActiveCorp is attempting a hostile takeover of Angie’s List.
In a letter to investors on Wednesday, Diller’s IAC said it was disappointed that the board of Angie’s List was not interested in engaging in negotiations and therefore it became necessary to make its intentions public.
IAC offers $512 million in cash or approximately 10% over the company’s
It offered $512 million in cash, which is about 10% above the company’s market value at the close of trading Wednesday.
Shares climbed as much as 17% in after-hours trading on the news, suggesting that some investors thought the final price could be higher. Trading later reached near start of day prices.
Angie’s List helps more than 3 million consumers nationwide find service providers in 720 categories, ranging from home improvement to health care.
IAC opeartes more than 150 major brands, including Ask.com, About.com, Match.com, Vimeo and HomeAdvisor.
HomeAdvisor is a rival of Angie’s List and the companies would be combined under IAC’s proposal.
No further details have been made available at this time.