We came across a bullish thesis on IAC Inc. (IAC) on Substack by Boyar Research. In this article, we will summarize the bulls’ thesis on IAC. IAC Inc. (IAC)’s share was trading at $46.24 as of Feb 24th. IAC’s forward P/E was 30.21 according to Yahoo Finance.
A digital publisher using the company’s predictive analytics to create relevant content on a webpage.
IAC Inc. is once again executing its well-established playbook with the upcoming spinoff of Angi Inc., marking another strategic move in its long history of incubating and spinning off businesses like Ticketmaster, Expedia, and Match Group. The transaction is as much about leadership transition as it is about corporate restructuring. Joey Levin, IAC’s CEO since 2015, is stepping down to become executive chairman of Angi, while Barry Diller, the legendary media mogul, is taking a more hands-on role at IAC as a “very senior executive.” This shift signals a renewed focus on capital allocation and deal-making, reinforcing IAC’s reputation as a savvy investment vehicle that unlocks shareholder value through disciplined portfolio management.
The decision to spin off Angi comes after a period of strategic stabilization. Over the past few years, IAC had to put M&A and capital returns on hold to address significant challenges within its two largest businesses—Angi and Dotdash Meredith. Angi’s sprawling service offerings led to inconsistent consumer and contractor experiences, while Dotdash Meredith faced difficulties integrating the assets it acquired from Meredith in 2021. In response, IAC implemented a turnaround strategy: Angi streamlined its business by cutting lower-quality engagements to improve profitability, while Dotdash Meredith revamped its digital strategy and operations. These initiatives have yielded tangible results—Angi’s EBITDA grew 23% in 2024 despite a 13% revenue decline, and Dotdash Meredith has returned to double-digit revenue growth after reversing earlier traffic declines.
Despite these improvements, IAC’s stock trades at a significant discount to the sum of its parts. Based on estimates, its underlying assets are worth approximately 48% more than its stock price. This deep discount presents an opportunity, as IAC’s holdings include an 85% stake in Angi, ~65 million shares of MGM Resorts International (representing over 20% of MGM’s common shares), a sizable private investment in rideshare platform Turo, and full ownership of Dotdash Meredith, which owns high-profile media brands like People, Better Homes & Gardens, and Verywell. Although Angi accounts for just ~15% of IAC’s estimated intrinsic value, its underperformance—down ~35% over the past year—has weighed on the parent company’s stock. However, with the spinoff expected by March 31, IAC will finally be free from Angi’s drag on its financials, allowing management to refocus on its core strengths: capital allocation and opportunistic investments.
With Dotdash Meredith’s turnaround largely complete, IAC is in a strong position to restart its M&A engine or ramp up share buybacks. On the company’s latest earnings call—his first in a decade—Diller suggested that capital deployment could soon resume, potentially through buybacks at attractive valuations or acquisitions in sectors where IAC has historically excelled. The company has also indicated that its MGM stake is a “forever holding,” making further investments in iGaming or related digital businesses a plausible next step. Additionally, given the ongoing transformation of the media landscape, IAC may explore opportunities in legacy media assets if the right valuations emerge. With Diller back at the helm, IAC is likely to make a bold move, positioning itself for its next chapter of shareholder value creation.
IAC Inc. (IAC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held IAC at the end of the third quarter which was 50 in the previous quarter. While we acknowledge the risk and potential of IAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.