IAC Split Official
HSN Leads the Way With 21% Increase
By Mike Farrell -- Multichannel News, 8/21/2008 3:30:00 PM
IAC/InterActiveCorp, the web of Internet and cable TV properties led by media mogul Barry Diller, officially split into five separate entities on Thursday, with its cable shopping unit HSN leading the way.
IAC announced in October its plan to split into five separate entities—IAC, Interval, HSN, Lending Tree and TicketMaster—in an effort to unlock the value of the individual businesses. The spin was delayed earlier this year after IAC shareholder Liberty Media disputed the structure of the split. That eventually ended up in a Delaware Court, which ruled in favor of IAC. In May, IAC and Liberty announced that they had settled their dispute, with Liberty agreeing to support the split.
Although it was the first day of trading for all of the stocks, the shares have been trading on a “when-issued” basis since Aug. 11. The price increases are based on the when-issued prices prior to the official split.
In their first day of trading, HSN experienced the biggest gain, mainly because it is the most likely takeover target, probably by Liberty, which owns No. 1 cable shopping channel QVC. HSN shares rose 21.25% ($2.68 per share) for the day to $15.29 each. Travel company Interval Leisure followed, rising 12.5% ($1.76 each) to $15.88 per share. Next was IAC (up 8% or $1.27 to $16.63); online ticketing giant Ticketmaster (up $1.45 per share to $23.09); and Tree.com (formerly LendingTree) which rose 4 cents per share to $7.46 each.
