INDIANAPOLIS (WISH) – Angie’s List has rejected a buyout proposal from InterActiveCorp (IAC), a media company.
The buyout was announced on Nov. 11. The proposal was submitted to Angie’s List to have all of their outstanding shares acquired by IAC. The transaction was sent to the Board of Directors, and was structured as an all-cash deal.
Angie’s List says they reviewed the proposal and decided it is “premature to conclude that a strategic transaction is in the best interest of Angie’s List shareholders.”
They also said that their proposed $8.75 per share undervalues the company.
Scott Durchslag, Angie’s List President and Chief Executive Officer, said in a press release:
“The Angie’s List Board and management team are united in our belief in Angie’s List and our market-leading platform. That IAC chose to announce its proposal on the same day as our public launch of LeadFeed is a testament to the strength of our evolving product and services offering. 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.”