IAC’s $512 Million Takeover Bid of Angie’s List Has Been Rejected

Angies List Review

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.

SEE ALSO:
10 Ways Social Media is Changing Advertising

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.