Shares of Match Group (NASDAQ:MTCH) have fallen today, down by 6% as of 2:15 p.m. EDT, after the company completed its spinoff from IAC (NASDAQ:IAC). Previously a majority owner, IAC had announced the plans last fall.
Following the separation, Match has eliminated its dual-class structure and IAC shareholders now hold Match shares directly. IAC and Match stockholders formally approved the spinoff last week. IAC has a long history of acquiring businesses and growing them before spinning them off into independent companies.
"This is just the largest transaction at the core of our strategy throughout these 25 years," IAC Chairman Barry Diller said in a statement. "Be opportunistic, be balance sheet conservative, build up enterprises and when they deserve independence let them have it."
Match, which operates popular dating tech platforms like Tinder, among others, will now enjoy greater strategic flexibility, more trading liquidity, and eligibility for index inclusion as an independent company. The company raised $500 million in fresh capital in May through a senior notes offering.
IAC shareholders are receiving one share of the new IAC stock and 2.1584 shares of the new Match stock for each share of old IAC stock previously held. Match also said that it added four new directors -- Stephen Bailey, Melissa Brenner, Wendi Murdoch and Ryan Reynolds -- as Mark Stein and Gregg Winiarski have resigned from the board in connection with the spinoff.