Angie’s List announced on Tuesday that on the basis of unanimous decision of its Board of Directors, it has decided not to pursue the unsolicited proposal from IAC/InterActiveCorp to acquire the Company.
According to the press release, after a comprehensive review, the Board decided that while the strategic transaction may not be in the best interests of Angie's List shareholders, IAC's $8.75 per share cash proposal also “dramatically undervalues the company and its long-term standalone prospects.”
"The Board does not believe it is in the best interest of Angie's List shareholders to rush to judgment and that doing so would be contrary to our fiduciary duties. The Board believes that it should have the opportunity to fully evaluate our Profitable Growth Plan and should share that plan with shareholders before reaching a decision as to whether to engage in a transaction with IAC or any other party", said Scott Durchslag, Angie's List President and Chief Executive Officer.
The company confirmed on 11 November that it has received an unsolicited proposal from IAC/InterActiveCorp to acquire the Company for $8.75 per share in cash. IAC’s offer, amounting to a total of $512 million, represented only a 10 percent premium to Angie’s List stock at the time of offer, BidnessEtc reported.
According to TVNewsRoom, had the offer been accepted and IAC had gotten its hands on the company, it would have been combined with IAC’s subsidiary HomeAdvisor, “creating a company with over $700 million in revenue, $35 billion in gross transaction value and over an estimated 15 million unique visitors per month.”
