IAC Inc. (NASDAQ: IAC) shares surged 5.42% in pre-market trading on Thursday, following the company's better-than-expected fourth-quarter earnings and strategic moves aimed at enhancing shareholder value and unlocking growth potential.
The internet media conglomerate reported a 1.5% revenue beat, although earnings per share fell short of analyst estimates by 69%. Despite the mixed results, investors were encouraged by IAC's robust cash flow, strong balance sheet, and strategic initiatives, including the planned spin-off of its Angi home services subsidiary.
The spin-off, set to be completed by March 31, is expected to unlock value for shareholders and enable greater focus on Angi's growth opportunities. Additionally, IAC's chairman, Barry Diller, hinted at plans to increase the company's ownership in MGM Resorts International, viewing it as an undervalued asset with significant growth prospects.
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