Can Match Group Overcome Its Looming Debt?

Online dating conglomerate Match Group (NASDAQ: MTCH) has seen its stock rise more than 100% since its December 2019 spinoff announcement from parent company IAC/InterActiveCorp (NASDAQ: IAC). But as a part of that transaction, IAC transferred $1.7 billion of exchangeable notes onto Match Group's already debt-ridden balance sheet. While the bulk of this debt isn't due for a while, investors should be asking whether or not Match Group will ultimately be able to pay it down.

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IAC is well known for incubating and spinning off businesses frequently. It has a history of acquiring smaller brands with a central theme, putting them under one umbrella, then releasing its ownership stake to the public. IAC spun off Expedia Travel Group (NASDAQ: EXPE) in a similar manner in 2005, but in Match Group's case, IAC transferred most of its outstanding debt to the newly independent company. 

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Source Fool.com