RELATED PARTY TRANSACTIONS WITH IAC |
9 Months Ended |
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Sep. 30, 2024 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS WITH IAC | RELATED PARTY TRANSACTIONS WITH IAC Allocation of CEO Compensation and Certain Expenses Joseph Levin, CEO of IAC and Chairman of Angi, was CEO of Angi from October 10, 2022 through April 8, 2024. As a result, IAC allocated $2.4 million for the nine months ended September 30, 2024 and $2.6 million and $7.2 million, for the three and nine months ended September 30, 2023, respectively, in costs to Angi (including salary, benefits, stock-based compensation and costs related to the CEO’s office). These costs were allocated from IAC based upon time spent on Angi by Mr. Levin. Management considers the allocation method to be reasonable. The allocated costs also include costs directly attributable to the Company that were initially paid for by IAC and billed by IAC to the Company. On April 8, 2024, Jeffrey W. Kip, President of Angi Inc., was appointed to succeed Joseph Levin as CEO of Angi Inc. Mr. Levin remains Chairman of the Angi Inc. board of directors. The Combination and Related Agreements The Company and IAC, in connection with the transaction resulting in the formation of Angi Inc. in 2017, which is referred to as the “Combination,” entered into a contribution agreement; an investor rights agreement; a services agreement; a tax sharing agreement; and an employee matters agreement, which collectively govern the relationship between IAC and Angi Inc. The Company was charged by IAC $0.8 million and $3.0 million, for the three and nine months ended September 30, 2024, respectively, and $1.8 million and $4.8 million for the three and nine months ended September 30, 2023, respectively, by IAC for services rendered pursuant to the services agreement. There were no outstanding payables pursuant to the services agreement at September 30, 2024 and December 31, 2023. At September 30, 2024 and December 31, 2023, the Company had outstanding payables of $1.3 million and $2.1 million, respectively, due to IAC pursuant to the tax sharing agreement, which are included in “Accrued expenses and other current liabilities” in the balance sheet. There were $2.3 million of payments to IAC pursuant to this agreement during the nine months ended September 30, 2024. There were no payments to or refunds from IAC pursuant to this agreement during the three and nine months ended September 30, 2023. Other Arrangements Additionally, the Company subleases office space to IAC and pursuant to a lease agreement charged rent of $0.1 million for both the three and nine months ended September 30, 2024 and less than $0.1 million and $0.6 million for the three and nine months ended September 30, 2023, respectively. IAC subleases office space to the Company and pursuant to a lease agreement charged rent of $0.3 million and $1.0 million for the three and nine months ended September 30, 2024, respectively, and $0.4 million and $1.0 million for the three and nine months ended September 30, 2023, respectively. At September 30, 2024 and December 31, 2023, there were no outstanding receivables due from or outstanding payables due to IAC pursuant to the sublease agreements. The Company incurred advertising expense of $1.1 million for the nine months ended September 30, 2024 and $1.5 million and $5.1 million for the three and nine months ended September 30, 2023, respectively, related to advertising and audience targeted advertising purchased from another IAC owned business. At September 30, 2024, there were no related payables outstanding. At December 31, 2023, there were related outstanding payables of $2.2 million included in “Accrued expenses and other current liabilities” in the balance sheet.
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