IAC Bids More Than $500 Million For Angie's List

IAC/InterActiveCorp. has offered to buy consumer-reviews website Angie's List Inc. for more than $500 million in cash or stock, IAC announced Wednesday afternoon. IAC said it bid $8.75 a share in cash, or offered to do a stock-for-stock exchange with its HomeAdvisor business, which IAC wants to combine with Angie's List. Angie's List offers consumer reviews of local professionals, such as plumbers and movers, and connects them to those providers. The company went public at $13 a share in 2011, but has fallen since: IAC's offering price was 10.6% higher than Angie's List's closing price of $7.92, but IAC noted it was a 50% premium to prices on Oct. 12, when a letter from hedge fund TCS Capital Management suggesting a merger with HomeAdvisor was made public. In a letter to the Angie's List board of directors included with Wednesday's announcement, IAC said it had not received a warm welcome from the company thus far. "We have been unable to develop any meaningful dialogue with you for many months now and were disappointed by your unwillingness to continue discussions with us following our meeting," the letter read. Angie's List shares popped 10% in late trading to more closely mirror the bid price.