HomeAdvisor parent company IAC makes bid to acquire Angie's List

IAC said the combination of Angie's List and HomeAdvisor would create a home services platform with more than $700 million in revenue. But Angie's List has rebuffed the offer.

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Angie's List co-founder Angie Hicks

Media conglomerate IAC, which owns such brands as HomeAdvisor, Match Group and Vimeo, made public its proposal to acquire home services company Angie's List for $512 million.

IAC is pursuing Angie's List on the premise of combining it with HomeAdvisor, and it's willing to do so either through an all cash transaction or stock-for-stock exchange.

IAC said the combined companies would create a home services platform with more than $700 million in revenue.

Shares of Angie's jumped 11 percent in after-hours trading following the announcement, however it appears an actual deal is quite a ways off. The Angie's List board was uninterested in the proposal, according to a letter disclosed by IAC.

IAC, however, seems determined to push the deal through.

"We are fully committed to this transaction and are confident that both Angie's List stockholders and our stockholders will recognize the value of our proposal," said IAC chief executive Joey Levin, in a statement.

The outright rebuff is a bold move by Angie's List, which has posted mostly losses since going public in 2011. Angie's List also faces a barrage of competitors in the local services segment.

Earlier this year Amazon launched Home Services, a hyper-local marketplace designed to connect shoppers with service providers. The program has yet to expand nationwide, but it has the potential to be a significant threat to Angie's List and other service provider marketplaces like TaskRabbit and HomeAdvisor.

IAC's Match Group unit, which owns digital dating platforms Tinder, Match and OkCupid, recently filed for an IPO.