Angie's List (ANGI) Said to Have Multiple Bidders - Source
- Wall Street hits record high for third day in a row
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
- Exclusive: Japan's TDK in talks to buy iPhone supplier InvenSense - sources
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Yesterday, amid shareholder frustration, Angie's List announced it hired Allen & Company LLC and BofA Merrill Lynch to explore strategic alternatives.
IAC would like to see Angie's List merged with its HomeAdvisor business, making it the premier home services platform. Last November, Angie’s List Board of Directors rejected IAC’s $8.75 per share cash proposal, saying it dramatically undervalued the Company and its long-term standalone prospects. If IAC were to revive its past offer it would represent a 25% premium to current levels.
This time around it appears Angie's List is more open to selling. That said, while memberships have skyrocketed - as the company has gone to a freemium model - financial metrics have lagged. The company reported today that revenues in the third quarter fell 8% to $79.7 million and adjusted EBITDA was a loss of $7.5 million, versus a gain of $3.2 million last year. Meanwhile, the company announced record-setting gross member additions of 1.6 million, up 436% from 0.3 million in the third quarter of 2015, bringing total membership count to 4.5 million.
In addition to IAC, private equity buyers are also said to be interested.
An Angie's List's spokesperson would not confirm or deny if IAC was back with a bid. IAC said it does not comment on rumors and speculation about transactions.
Shares of ANGI last traded down 7.5% to $7.00.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Japan's TDK in Talks to Buy InvenSense (INVN) - Reuters
- Hearst Said to Consider Buying Some Time (TIME) Magazines - NYP
- Cheniere Energy (LNG) Ends Talks to Acquire Cheniere Energy Partners LP (CQH)
Create E-mail Alert Related CategoriesHot M&A, Mergers and Acquisitions, Rumors
Related EntitiesMerrill Lynch, Bank of America
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!