Barry Diller’s IAC Inc. (IAC.O) is nearing a deal to sell Care.com as the media conglomerate streamlines operations amid poor stock performance.
The potential divestiture would mark IAC’s exit from the caregiving marketplace it acquired for $500 million in 2020, as the company focuses resources on core assets including People Inc. and its MGM Resorts stake.
Key Takeaways
- IAC exploring Care.com sale after $500 million 2020 acquisition
- Move part of broader streamlining strategy amid stock underperformance
- Company refocusing on People Inc. and MGM investment
Strategic Portfolio Reshuffling
IAC’s shares have struggled in recent years as investors questioned the conglomerate’s complex structure and diverse holdings. The company has been working to simplify its portfolio and unlock shareholder value through strategic divestitures and spin-offs.
Care.com represents one of IAC’s smaller digital platforms, generating solid revenues but lacking the scale of the company’s major assets. The caregiving marketplace connects families with babysitters, housekeepers and senior care providers across multiple markets 1.
Financial Context
IAC completed its Care.com acquisition in February 2020 for approximately $500 million, betting on growth in the family care market worth more than $300 billion in the United States alone 2. The purchase came as IAC was simultaneously spinning off Match Group, its dating app empire.
The company’s current market capitalization of around $3.2 billion trades at a significant discount to some analysts’ sum-of-parts valuations, which estimate IAC’s intrinsic value above $6 billion 3.
Core Asset Focus
IAC’s remaining portfolio centers on People Inc. (formerly Dotdash Meredith), which operates major digital media brands including People magazine, Better Homes & Gardens, and Food & Wine. The company also holds strategic stakes in MGM Resorts International and car-sharing platform Turo.
“Family care is exciting new territory for us – and an accelerating market as demand for both child and senior care intensifies worldwide,” IAC CEO Joey Levin said when announcing the Care.com acquisition in 2019 4.
Market Performance Pressure
IAC has faced investor pressure to simplify its structure and improve returns. The company’s track record includes successful spin-offs of Match Group, Vimeo, and Angi, though recent performance has been mixed compared to broader market gains.
The potential Care.com sale follows IAC’s pattern of building businesses before eventually divesting them as independent entities or selling to strategic buyers seeking scale in specific verticals.
Outlook
Terms and timing of any potential Care.com transaction remain unclear. IAC continues evaluating its portfolio structure as it seeks to optimize shareholder value while maintaining focus on its highest-potential assets.
The company’s substantial cash position and MGM stake provide financial flexibility as it navigates strategic decisions around its remaining digital properties and media investments.
Not investment advice. For informational purposes only.
References
1“Care.com shares surge after IAC agrees to buy caregiver marketplace” (December 20, 2019). CNBC. Retrieved March 2, 2026.
2Paul R. La Monica (December 20, 2019). “IAC may have found its next big thing after Match”. CNN Business. Retrieved March 2, 2026.
3“IAC Holding: Is the Next Billion-Dollar Spinoff on the Horizon?” (July 13, 2025). High Tech Investing. Retrieved March 2, 2026.
4Paul R. La Monica (December 20, 2019). “IAC may have found its next big thing after Match”. CNN Business. Retrieved March 2, 2026.