Barry Diller's IAC to spin off

Barry Diller's IAC/InterActiveCorp on Thursday announced plans to spin off The Match Group.

The company also announced that Joey Levin, formerly CEO of its search & applications business, has been named CEO of IAC and has joined its board of directors. Greg Blatt will remain chairman and Sam Yagan CEO of The Match Group.

Shares of IAC rose more than 5 percent in premarket trading on the news. (Get the latest quote here.)

IAC expects The Match Group to issue less than 20 percent of its common stock in the initial public offering, with IAC's remaining stake represented by both high- and low-vote common shares. The IPO is expected to be completed during the fourth quarter of 2015.

The Match Group includes the websites and, and the Princeton Review. The company also owns the dating website Tinder.

-CNBC's Andrew Ross Sorkin contributed to this report.