The board of directors at Angie’s List says it has rejected a $512 million takeover deal from internet company IAC/InterActiveCorp.
Following news that Angie’s List turned down the buyout offer, shares of Angie’s List fell sharply before the stock market opened Tuesday.
The home services review platform said last week’s deal “dramatically undervalues” the company.
IAC’s offer included a 10% premium over the company’s $8.75 share price at the time of the offer.
Angie’s List said it has a plan to grow its profit and added that a deal with IAC will not benefit shareholders.
IAC is best known for its websites About.com and HomeAdvisor, the later of which is a competitor to Angie’s List.
Angie’s List Inc., based in Indianapolis, lets users research, shop for and rate plumbers, cleaners and other home services.
The company’s shares fell 7% to $9.15 in premarket trading Tuesday.