IAC Reorgs: Blatt To Chairman, Match Group
IAC/InterActiveCorp named company CEO Greg Blatt chairman of the newly created Match Group, consisting of IAC's Match businesses, Tutor.com, DailyBurn and an investment in Skyllzone.
The company will not name a new CEO. Instead, the move changes the organizational chart to provide a straight line from Joey Levin, CEO of Search & Applications, to Barry Diller, chairman and senior executive.
All properties in the IAC Search & Applications division, such as Ask.com, will continue to report to Levin. Daily operations will continue unchanged, according to a spokesperson.
Blatt will focus on growing the dating businesses, leveraging best practices across the Match Group and expanding the Match Group portfolio beyond verticals used today. Sam Yagan, CEO of Match, takes the role of CEO of the Group. Kerry Trainor, CEO of Vimeo, will report directly to Diller.
Diller said in the announcement that Levin has managed the Search and Applications division well for many years. "We're confident in its continued success in the content and search areas."
Mark Mahaney, analyst at a RBC Capital Markets, believes this reorg could mean a spinoff of the personals business that support sites like Match. This makes it more likely, in his view, to create more value for the company. "We would note that the company has a substantial history of consolidating and spinning of assets, and we think that the online personals category as a whole is an attractive segment," he wrote in a research note published Thursday.
Mahaney called IAC a complex company with a solid management team and several completely unrelated businesses. "Its Search & Apps segment faces a myriad of challenges--consistently disruptive Google policy changes, a seismic Mobile transition, unclear Browser developments, a shifting competitive landscape, etc.," he wrote in a research note published Thursday, but its business units create a stock supporting "reasonable growth."