SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 6—SHAREHOLDERS’ EQUITY

Description of Common Stock

The rights of holders of Match Group common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. The holders of shares of Match Group common stock are entitled to receive, share for share, such dividends as may be declared by Match Group’s Board of Directors out of funds legally available therefor. In the event of a liquidation, dissolution, or winding up, holders of the Company’s common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of all liabilities.

Reserved Common Shares

In connection with equity compensation plans, the Exchangeable Notes, and warrants, 94.6 million shares of Match Group common stock are reserved at June 30, 2020.

Retirement of Treasury Stock

On June 30, 2020, prior to the Separation, Former IAC retired all Former IAC common stock and Class B common stock held in treasury.

Preferred Stock

The Company has authorized 100,000,000 shares, $0.01 par value per share, of preferred stock. No shares have been issued under this authorization.

Series of equity transactions related to the Separation of Former IAC

Upon the consummation of the Separation, holders of Former IAC common stock exchanged outstanding common stock for (i) one share of Series 1 Mandatorily Exchangeable Preferred Stock, which was immediately exchanged, and then retired, for one share of IAC common stock; and (ii) 2.1584 shares of Match Group common stock, par value $0.001 per share.

Upon the consummation of the Separation, holders of Former IAC Class B common stock exchanged outstanding Class B common stock for (i) one share of Series 2 Mandatorily Exchangeable Preferred Stock, which was immediately exchanged, and then retired, for one share of IAC Class B common stock; and (ii) 2.1584 shares of Match Group common stock, par value $0.001 per share.