Shares of Angi Inc. (ANGI) surged 5.18% on Friday, November 11, 2024, after its parent company IAC announced plans to explore spinning off the home services platform as a separate public company.

Angi operates a digital marketplace that connects home service professionals with consumers for tasks like repairs and remodeling. It was formed in 2021 through the merger of Angie's List and HomeAdvisor, both acquired by IAC in earlier years.

IAC, an internet holding company, currently owns an 85% stake in Angi, which has a market value of around $1.25 billion. In its third-quarter earnings report, IAC revealed it is evaluating the possibility of spinning off its majority stake in Angi to create a standalone public company.

While Angi has seen revenue declines for the past seven quarters due to factors like lower service requests and eliminating low-margin revenue streams, IAC CEO Joey Levin expressed optimism about the unit's long-term prospects. "Angi's economic foundation continues to strengthen, and we suspect that Angi's best shot at realizing that upside to the benefit of our shareholders may be as a standalone company," Levin said.

The news of a potential spin-off was seen as a positive development by investors, driving Angi's stock price higher on Friday. Analysts believe that separating Angi from IAC could allow the business to better focus on its growth strategy and unlock value for shareholders.