After reporting a loss of $16.8 million on revenue of $79.7 million for the third quarter of 2016, Indianapolis-based home improvement marketplace Angie’s List Inc. (NASDAQ: ANGI) said it engaged investment banks Allen & Co. and BofA Merrill Lynch to explore strategic opportunities, which may include a sale of the company.
The company’s stock closed at $7.57, down 1.69%, bringing its market value to roughly $445 million today.
The move comes a year after the company rejected a $512 million buyout offer from Barry Diller’s IAC (NASDAQ: IAC), which owns major digital brands, including HomeAdvisor, Vimeo, About.com, Dictionary.com, Daily Beast, Investopedia, Match, OkCupid and Tinder.
“Our revenue and adjusted EBITDA are down year over year so our financial results are lagging the leading indicators in our operating metrics,” said Angie’s List president and chief executive Scott Durchslag.
“We are continuing to see a robust impact from executing our turnaround plan and are extremely focused on opportunities to further accelerate our growth,” continued Durchslag. “To that end, we have decided to explore strategic alternatives to achieve the full potential of our new platform.”
“Therefore, we have recently engaged Allen & Company LLC and BofA Merrill Lynch to explore these strategic opportunities,” he added.
Angie’s List was founded in 1995 by Angie Hicks and venture capitalist William S. Oesterle. The idea resulted from Hicks’s search for a reliable construction contractor in suburban Columbus, Ohio, on behalf of Oesterle, who was her boss.
More than four and a half million members in the U.S. are said to use Angie’s List, a leading provider of crowdsourced reviews of local businesses in over 700 service categories.
Angie Hicks, co-founder and CMO of Angie’s List.