Is It Time for Investors to Take a Break From Match Group?
This article was first published by MyWallSt. Do you want access to 25 years of market-beating experience in one day? Find out more about MyWallSt's exclusive InPerson November event!
Digital technology holding company IAC (NASDAQ: IAC) made headlines earlier in the month when it revealed plans to spin off Match Group (NASDAQ: MTCH), its best-known and most valuable asset. IAC, which owns roughly 80% of the dating giant, is simply following a well-established practice. Indeed, the holding company is noted for incubating young businesses and then launching them as separate companies. Expedia, Ticketmaster, and Interval have all followed the same path.
Although the move would fall in line with IAC's past behavior, many journalists and investors were quick to point out the many scandals with which Match Group is plagued, suggesting the spinoff was a way for the parent company to rid itself of a headache. After all, it's no secret that Tinder, Match Group's star dating app, has been embroiled in a series of ugly lawsuits for months. These include accusations of sexual harassment against a former Tinder CEO, who in turn made a counterclaim against his accuser.
Source Fool.com
