IAC/InterActive Corp., the holding company behind Vimeo, CollegeHumor, The Daily Beast and a host of other brands, is chronically undervalued by Wall Street despite its efforts to reward investors, CEO Joey Levin said Thursday on CNBC.
Between its majority stakes in two of its now-public former subsidiaries — Tinder parent Match Group and Angie's List parent ANGI Homeservices — and its cash hoard, IAC's total value "usually adds up to something more than [its] market cap," Levin told Cramer in a "Mad Money" interview.
At the end of Thursday's trading session, Match Group's market cap was around $15.5 billion and ANGI's was roughly $8.5 billion. Just taking into account IAC's 81.1 percent and 83.9 stakes in each company, respectively, and the $1.7 billion in cash on its balance sheet, that adds up to roughly $21.4 billion — well above IAC's current $18 billion market cap.
"I think [at] any multi-business business, there are reasons that investors give them a discount," Levin said on Thursday, adding that some might think "they'll never get access to the cash flow" because the company is so multifaceted.
But according to Levin, who has been CEO since 2015, IAC has a history of bucking that stereotype.
Click here to watch and read more about Levin's interview.