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About Match Group, Inc.

IAC/InterActiveCorp (IAC) has a portfolio of websites including influential brands with a fair share of name recognition, such as current affairs magazine The Daily Beast, video service Vimeo, and entertainment site CollegeHumor.com. It also owns search engine Ask.com and fitness app Daily Burn. The company has a service agreement with Google. About two-thirds of revenue comes from the US. Chairman Barry Diller, his wife Diane von Furstenberg, and his stepson Alexander von Furstenberg control much of IAC's voting power. In 2020, IAC completed its spin off with Match Group, which includes dating sites Match, Tinder, and OkCupid. It is also exploring a possible spinoff of ANGI Homeservices.

 

Operations

IAC operates through six business segments: Match Group (nearly 45% of revenue), ANGI Homeservices (nearly 30%), Applications (about 10%), Vimeo and Dotdash (nearly 10% combined), and Emerging & Other accounts the remainder.

The company has become known for incubating businesses and spinning them off into separate companies; as such it has completed its spin off with dating service Match Group, which claims approximately 9.3 million average subscribers. It is also considering a spinoff of ANGI Homeservices, which includes home service referral sites HomeAdvisor and Angie's List.

IAC's Applications segment includes desktop applications, such as PDF converter FromDocToPDF, and mobile applications such as fitness program Daily Burn.

Vimeo operates a platform for producers to stream, host, and monetize videos online. Revenues primarily come from Software-as-a-Service (SaaS) fees paid by its 1.2 million subscribers.

Dotdash includes internet content on a variety of topics such as health and wellness (Verywell brands); lifestyle (Spruce family); and personal finance (Investopedia), among others. Revenue mainly comes from ads and affiliate commissions, when Dotdash refers users to commerce partner websites resulting in a purchase. Dotdash has over 90 million users each month.

Emerging & Other includes Ask Media, The Daily Beast, College Humor, and IAC Films.

Geographic Reach

IAC, based in New York City, has operations in North America, Europe, and Asia. Its ANGI Homeservices segment operates across the US, as well as in Austria, Canada, France, Germany, Italy, the Netherlands, and the UK. The US accounts for two-thirds of total company revenue.

Sales and Marketing

IAC markets its services through a wide variety of activities including traditional marketing, television, print, and radio advertising, public relations, and e-mail campaigns. The company spent around $1 billion on advertising in 2019, 2018 and 2017, respectively.

IAC is fairly reliant on Google for revenue; the search giant is IAC's biggest customer, supplying about 15% of its revenue.

Under its agreement with Google, the search giant provides IAC and its partners with sponsored listings and other search-related services for display on both desktop and mobile platforms.

 

Financial Performance

Revenue increased $494.2 million, or 12%, to $4.8 billion, due to growth from MTCH of $321.4 million and ANGI of $194.0 million, increases of $36.6 million from Dotdash and $36.4 million from Vimeo, partially offset by decreases of $62.8 million from Applications and $31.4 million from Emerging & Other due, in part, to the sales of Electus, Dictionary.com and CityGrid in the fourth quarter of 2018.

The company's net income decreased by about $213.9 million to $543.8 million, due to overall increase on their expenses with by almost $478 million.

Cash at the end of 2019 was $3.1 billion, an increase of $1 billion from the prior year. Cash from operations contributed $937.9 million to the coffers, while investing activities used $329.5 million, mainly for purchases of investment and acquisitions. Financing activities provided $399.8 million due to proceeds from issuance of IAC debt.

Strategy

The company focuses on approaching various brands in order to reach a broad range of users. The company's key brands are: Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime.

Acquisitions, which are generally referred to in GAAP as business combinations, are an important part of the Company's growth strategy. The Company invested $205.7 million and $243.3 million in acquisitions in the years ended December 31, 2019 and 2018, respectively.

Mergers and Acquisitions

In 2020, IAC completed its spin off with dating service Match Group, Inc., a direct wholly owned subsidiary of IAC. The businesses of Match Group will be separated from the remaining businesses of IAC through a series of transactions that will result in: owning shares in two, separate public companies and the completion of the separation.

In 2020, IAC acquired Care.com, a leading global platform for finding and managing family care, designed to meet the evolving needs of today's families and caregivers. Care.com also provides household payroll and tax services and customized corporate benefits packages covering the care needs of working families.

In 2019, IAC made a $250 million investment in Turo, a leading peer-to-peer car sharing marketplace, and acquired a controlling interest in Nursefly, a temporary health care staffing platform. In addition, through Vimeo, it acquired Magisto, a video creation service enabling businesses and consumers to create short-form videos.

Company Background

IAC can trace its roots back to 1986, when it began as a hybrid broadcasting and electronic retail company. Since its founding it has undergone several name changes (from Silver King Broadcasting Company to HSN to USA Networks to USA Interactive to InterActiveCorp, and finally, to IAC/InterActiveCorp), as well as a number of significant corporate reorganizations. 

The company's history is closely tied to that of its founder, Barry Diller. The media mogul dropped out of UCLA in 1958 to work in the mailroom at the William Morris talent agency (he was promoted to agent in 1961). He got into television in 1968 as the VP of programming for ABC, where he developed the concepts of the miniseries and the made-for-TV movie. Diller's next step took him into movies as chairman of Paramount Pictures in 1974. His 10-year Paramount stint produced films including Raiders of the Lost Ark. But Diller's biggest claim to fame is his tenure at FOX. Beginning in 1984, he led the brash television network from joke to jewel. 

Diller established his own company, which eventually became IAC, after taking over the Home Shopping Network and its separately traded distribution unit, Silver King Communications. The company continually revaluates its assets. Former IAC spinoffs include Expedia, LendingTree, and Ticketmaster.

Match Group, Inc.

8750 N Cntl Expy Ste 140 Ste 1400
Dallas, TX 75231
Phone: 1 (214) 576-9352

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: MTCH
Stock Exchange: , NASDAQ
Chairman, IAC/InterActiveCorp and Expedia: Barry Diller
Vice Chairman: Victor A. Kaufman
CEO: Joseph Levin
Employees (This Location): 3,300
Employees (All Locations): 8,700

Major Office Locations

Dallas, TX

Other Locations

Newark, CA
Oakland, CA
San Francisco, CA
West Hollywood, CA
Washington, DC
Chicago, IL
Vale, NC
New York, NY
Greenville, OH
Moscow, Russia