Diller’s IAC/InteractiveCorp To Split Into Five Units
Transaction Would Simplify Complex Structure
By Mike Farrell -- Multichannel News, 11/5/2007 3:49:00 AM
Shares of IAC/InteractiveCorp soared by more than 9% ($2.80 per share) to $32.42 each on Monday after the television and Internet conglomerate headed by media baron Barry Diller said it would split into five separate publicly traded companies.
According to a prepared statement, IAC will split into five separate units:
* IAC: housing its Media & Advertising sector, including Ask.com, Citysearch, IAC Advertising Solutions and Evite; Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica; its Emerging Businesses sector: Black Web Enterprises, BustedTees, CollegeHumor, GarageGames and Gifts.com; and IAC’s current investments in Active.com, Brightcove, FiLife, Medem, MerchantCircle, OpenTable, Points.com and SHOP Channel.
* HSN: which will include HSN TV, hsn.com, and the Cornerstone Brands, Inc. portfolio of catalogs, web sites and retail locations.
* TicketMaster:including its domestic and international operations, TicketService, TicketWeb and Ticnet.se, as well as Ticketmaster’s current investments in Frontline and iLike;
* Interval International, which will also include CondoDirect, Resort Quest Hawaii and VacationSource.com;
* LendingTree, which will also include RealEstate.com, Domania, GetSmart, Home Loan Center and iNest.
In a statement, Diller said the deal would simplify IAC’s complicated structure.
“We’ve been a complex enterprise almost from the very beginning 12 years ago, with hundreds of transactions over those years,” Diller said in a statement. “And while we’ve created a lot of value, I’ve always believed our complexity and many mouthfuls of sentences to explain who we are and what our strategy is have hampered clarity and understanding with all our constituencies, particularly investors.
Diller will continue as chairman and CEO. Mindy Grossman, Sean Moriarty, CD Davies and Craig Nash will continue as Chief Executive Officers of HSN, Ticketmaster, LendingTree and Interval respectively, and Bret Violette will continue as President of RealEstate.com.
Upon completion of the transaction, IAC’s shareholders will own 100% of the equity in all five companies (IAC, HSN, Ticketmaster, Interval and LendingTree). The transaction is expected to be tax-free for both IAC and its shareholders.
No related content found.
VIEW ALL GALLERIES
