Angie’s List Falls After Saying It Won’t Pursue IAC Offer

The Angie’s List headquarters are located in downtown Indianapolis. Since going public, the tech company has lost money with each passing year and faces pressure from frustrated stakeholders, who want it sold to compete more effectively in the $300 billion home services sector.

Now the Angie’s List (ANGI) board is telling shareholders that the bid seriously undervalues the company and said it’s better off standing alone. “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”, Durchslag said in a press statement.

The buyout offer came in at around $8.75 a share, or about $512 million, and would have merged Angie’s List with its own HomeAdvisor service.

IAC CEO Joey Levin reached out to Angie’s List management in late October, according to a letter Durchslag sent to Levin, and the board had the same response at that time.

Indianapolis-based Angie’s List is not taking a proposed buyout.

There is no indication as to what would have happened to the Angie’s List brand, or any of its employees, if the transaction had gone through.

Angie’s List CEO Scott Durchslag pointed out that he has only been on the job since September, and that the company is working up a path toward profitability that just isn’t ready for disclosure quite yet.

The positive reception we are receiving from members and service providers to our new offerings gives us confidence that we are heading in the right direction.

Called Amazon Home Service, it launched with 700 services categories, including iPhone fix, yoga classes, vehicle maintenance, TV wall-mounting, auto battery installation and house cleaning. The company operates in all 50 states, and now has over 200,000 unique paying professionals.

Angie’s List says it serves more than 3 million households. At the time of the offer the $8.75 was above market share, Angie’s List was trading around $9.73 this morning.

IAC did not immediately respond to a request for comment.