IAC adds board member amid activist investor pressure

• Earlier this year, IAC said its longtime CEO Joey Levin would step down to become executive chair of Angi as it became its own independently traded company.
• IAC's chair Barry Diller stepped into more of a day-to-day leadership role at the company.

Zoom out: The Angi spinoff put a spotlight on how much IAC's business has become reliant on Dotdash Meredith, the publishing giant that includes brands such as People, Southern Living and Better Homes & Gardens.

• Arkhouse, which said Tuesday it has become a significant shareholder of IAC, is pushing to reconcile the gap between IAC's market value and the actual value of its assets.
• In a statement, Arkhouse said it believes IAC's assets could "be worth upwards of $72 a share," which is significantly higher than the $35 per share IAC currently trades at.

By the numbers: IAC owns 100% of Dotdash Meredith and Care.com. It has a 22% stake in MGM Resorts and a 32% stake in car rental company Turo.

• Dotdash Meredith made up 53% of IAC's overall revenue in the fourth quarter of last year when IAC still owned Angi.
• If Angi was removed from IAC's balance sheet calculus in that quarter, Dotdash Meredith would have represented 72% of its revenue, per company figures.

The big picture: Angi, which was spun out officially on April 1, was the third major spinout from IAC in the past five years, following Match Group in 2020 and Vimeo in 2021.

Between the lines: Arkhouse has typically targeted real estate investments but started to broaden its focus last year.

• IAC framed conversations with Arkhouse as constructive in a statement.

What to watch: In addition to the new board member, IAC said it will implement a new director resignation policy "for nominees who receive less than a majority of votes cast in uncontested director elections."

• That change could make it easier for future changes to be made to IAC's board.