INDIANAPOLIS – Media and Internet giant InterActiveCorp made an offer to buy Angie’s List late last month, but the Indianapolis-based company wasn't interested.
Now, according to a news release distributed Wednesday, IAC has altered its original proposal by offering to acquire all of the outstanding shares of Angie's List stock for $8.75 per share. The transaction is structured as an all-cash deal, but IAC says it would also consider combining Angie's List with IAC's HomeAdvisor business through a tax-free stock-for-stock exchange.
In a letter to the Angie's List board of directors, IAC's CEO Joey Levin said his company's all-cash proposal is an effort to demonstrate "our strong commitment to bringing our two companies together." The offer is 50 percent above the price of Angie's List stock on Oct. 12 – the day before one of Angie's List's largest investors, TCS Capital, publicly advocated for pursuing a deal with HomeAdvisor.
In a statement posted on its website Wednesday evening, Angie's List confirmed it had received the unsolicited offer from IAC.
"Consistent with its fiduciary duties, the Angie's List Board, in consultation with its independent financial and legal advisors, will carefully review and evaluate IAC's proposal to determine the course of action that the Board believes is in the best interest of the Company and all Angie's List shareholders," the statement read.
This isn't the first time Wall Street has buzzed with news of a potential sale of Angie's List. Just over a year ago, The Financial Times -- citing anonymous sources -- reported the company was seeking a buyer. That news, which came just weeks after Angie's List restructured its debt, fueled speculation of a sale and temporarily lifted stock prices.
News of IAC's $512 million offer Wednesday boosted Angie's List shares 12 percent to $8.85 in after-hours trading.
IAC is headquartered in New York City and owns more than 150 brands and products around the world. In addition to Home Advisor, IAC's holdings include Vimeo, Tinder, The Daily Beast and About.com.
Angie's List, which started as a call-in service and newsletter, celebrated 20 years of operation in May. The company has struggled to turn a profit since it went public in 2011; but on Sept. 30, it announced the first profitable third quarter in its history, with $87 million in revenue.