(Updates shares, adds background)
Oct 11 (Reuters) - IAC/InterActiveCorp said on Friday it intends to spin off its ownership stake in Tinder-owner Match Group Inc resulting in the full separation of the two companies.
The two entities, "New Match" and "New IAC", post the separation will function as two independent public companies.(bit.ly/2MAE78T)
The proposal, which will be tax-free for shareholders, comes months after IAC first announced its intention to distribute its stake in Match group to its shareholders.
IAC has a history of spinning off companies like travel site Expedia and ticket booking site ticketmaster.
As of Thursday, IAC owned a 80.5% stake in Match, which also owns other dating services such as Hinge, Harmonica and OkCupid.
The company said that "New Match" will be responsible for some liabilities and certain real estate assets of IAC, adding that discussions concerning a possible deal may be terminated at any time by Match or IAC.
Shares of IAC were up 1.90% while shares of Match Group were down 2.41% in morning trade.
Match accounted for nearly half of IAC's total revenue of $1.19 billion, according to its second-quarter report.
Last month, Match Group disclosed it had received a subpoena from the U.S. Department of Justice for documents relating to certain marketing-related claims in a Federal Trade Commission's complaint. (Reporting by Neha Malara in Bengaluru; Editing by Shailesh Kuber)