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Media mogul Barry Diller's IAC to buy Angie's list

May 1 (Reuters) - IAC/InterActiveCorp said on Monday it would buy consumer review website operator Angie's List Inc in a deal that values the company at about $500 million.

Media mogul Barry Diller's IAC said it would combine Angie's with its digital home services marketplace business, HomeAdvisor, and create a publicly traded company ANGI Homeservices Inc.

Investors in Angie's List would get one Class A common share of the new company, or $8.50 in cash for each share held.

The offer represents a premium of 44.3 percent to Angie's Monday close.

Angie's List shares were up 43.3 percent in after-market trading on Monday, while IAC's stock was unchanged.

IAC, which holds a majority stake in Match Group Inc , owner of Tinder and OKCupid, said the cash portion would be capped at $130 million.

The Wall Street Journal first reported the deal, citing sources.

IAC in November 2015 made an unsolicited bid to buy Angie's for about $512 million in cash, after activist investor TCS Capital Management urged the company to combine with an industry player such as HomeAdvisor. (http://reut.rs/2pp8gxk) (Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)