Hubbry Logo
IAC Inc.IAC Inc.Main
Open search
IAC Inc.
Community hub
IAC Inc.
logo
8 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
IAC Inc.
IAC Inc.
IAC Inc.
View on Wikipedia
from Wikipedia

IAC Inc. is an American holding company that owns brands across 100 countries, mostly in media and Internet.[3] The company originated in 1996 as HSN Inc. as the holding company of Home Shopping Network and USA Network before changing its name to USA Networks, Inc. in 1999 and its television assets were sold to Vivendi in 2002. Those are now owned today by NBCUniversal, a division of Comcast.

Key Information

The company is incorporated under the Delaware General Corporation Law[4] but is headquartered in New York City.[5] Joey Levin, who previously led the company's search and applications segment,[6] served as chief executive officer from June 2015 until April 2025.[7]

History

[edit]

1980s and 1990s

[edit]

IAC was established in 1986 as Silver King Broadcasting Company, as part of a plan to increase viewership of the Home Shopping Network (HSN) by purchasing local television stations.[8][9] By 1988, Silver King had bought 11 stations for about $220 million.[9] The company was later renamed as HSN Communications, Inc., and then Silver King Communications, Inc.[8] In 1992, Silver King was spun off to HSN shareholders as a separately traded public company with the Nasdaq stock ticker SKCI.[10] In August 1995, Barry Diller acquired control of Silver King, in a deal backed by the company's largest shareholder, Liberty Media.[11][12] Diller, who had led the creation of the Fox network, reportedly hoped to use Silver King's stations as the foundation for a new broadcast network.[12]

The company acquired several assets in the late 1990s. In December 1996, Silver King acquired an 80% stake in HSN for $1.3 billion in stock, and changed its own name to HSN, Inc.[13][14][15] At the same time, the company acquired Savoy Pictures, a failed film studio that owned four Fox affiliate stations through SF Broadcasting, for $210 million in stock.[16]

HSN purchased a controlling stake in Ticketmaster Group in July 1997,[17] and then acquired the rest of the company in June 1998.[18][19] In February 1998, it acquired the television assets of Universal Studios (including USA Network, Sci-Fi Channel, and Universal Television's domestic production and distribution arms) for $4.1 billion.[20][21] The company's name was changed to USA Networks, Inc. at this point.[21] Continuing its acquisition strategy, the company acquired the Hotel Reservations Network in May 1999 for $149 million.[22][23]

USA Networks merged the online division of Ticketmaster with city guide website Citysearch in September 1998, establishing a new company that went public as Ticketmaster Online–CitySearch (TMCS).[24][25] USA then sold Ticketmaster proper to TMCS in 2001, retaining a 61 percent share in the combined company, which became known as simply Ticketmaster.[26][27] USA brought Ticketmaster back under full ownership in 2003, purchasing all outstanding shares.[28]

2000s

[edit]

In the early 2000s, USA Networks began divesting itself of its traditional television broadcasting and production units. In May 2001, Univision Communications acquired USA Broadcasting (a division of USA Networks including 13 local stations).[29] The next year, Vivendi bought the rest of USA's broadcast entertainment businesses, including the USA Network and Sci-Fi Channel.[30] This led to the creation of a new company named Vivendi Universal Entertainment, led by Diller.[31] Throughout this transition, USA Networks continued to build up its online portfolio. In July 2001, the company entered the online travel business with its acquisition of Expedia,[32] followed the next year by an acquisition of Interval International.[33]

Following the shift in focus to online assets, the company changed its name to USA Interactive (USAI)[34] in May 2002;[35] InterActiveCorp in June 2003;[36] and finally to IAC/InterActiveCorp in July 2004.[37]

In August 2003, IAC acquired the online mortgage comparison site LendingTree,[38] and in September, the company added discount travel website Hotwire.com to its growing list of acquisitions.[39] In October, IAC agreed to buy French travel site Anyway.com from Transat A.T. for $62.7 million.[40]

In 2004 and 2005, IAC continued its growth through acquisition, adding assets including Tripadvisor,[41] ServiceMagic,[42] and Ask Jeeves.[43] It also launched Gifts.com during this period.[44] In August 2005, the company bundled together its travel-related sites and spun them off as a new public company, Expedia, Inc.[45] Additional acquisitions in 2006 included ShoeBuy.com,[46] which the company later sold to Jet,[47] and Connected Ventures including CollegeHumor and Vimeo.[48]

In May 2008, IAC and Ask.com acquired Lexico, the owner of Dictionary.com, Thesaurus.com, and Reference.com.[49] In August 2008, IAC spun off several of its businesses, including: Tree.com (formerly LendingTree), the Home Shopping Network, Ticketmaster, and Interval International.[50]

In 2009, IAC acquired Urbanspoon[51] and People Media,[52] and launched the production company Notional.[53] IAC would later sell Urbanspoon to Zomato in 2015.[54]

2010s

[edit]

IAC's largest shareholder, Liberty Media, exited the company in 2010, following a protracted dispute over the 2008 spinoffs.[55][56] Liberty traded its IAC stock for $220 million in cash, plus ownership of Evite and Gifts.com.[55] On the same day, Diller stepped down as CEO but remained chairman, and Match.com CEO Greg Blatt was appointed to succeed him.[55] That same year, IAC acquired dating site Singlesnet[57] and fitness site DailyBurn.[58]

In January 2013, IAC acquired online tutoring firm Tutor.com.[59] On August 3, 2013, IAC sold Newsweek to the International Business Times on undisclosed terms.[60] On December 22, 2013, IAC fired their director of corporate communications, Justine Sacco, after an AIDS joke she posted to Twitter went viral,[61] being re-tweeted and scorned around the world.[62] The incident became a byword for the need for people to be cautious about what they post on social media.[63]

In 2014, IAC acquired ASKfm for an undisclosed sum.[64]

In November 2015, IAC and Match Group announced the closing of Match Group's previously announced initial public offering.[65]

In May 2017, HomeAdvisor combined with Angie's List, forming the new publicly traded company ANGI Homeservices Inc. The company made its stock market debut in October 2017. In October 2018, ANGI made its first acquisition of on-demand platform Handy.[66]

In January 2019, IAC sold Citysearch parent CityGrid to eLocal.[67] In July 2019, IAC made its largest investment ever in the world's largest peer-to-peer car sharing marketplace, Turo. Later that year, IAC acquired Care.com.[68] In December 2019, IAC and Match Group entered into an agreement providing for the full separation of Match Group from the remaining businesses of IAC.[69]

2020s

[edit]

In January 2020, IAC withdrew its financial backing for CollegeHumor and its sister websites and sold the websites to Chief Creative Officer Sam Reich; IAC remains a minority owner of Reich's rebranded company Dropout. As a result of the restructuring, more than 100 employees of CollegeHumor were laid off.[70] In February, IAC completed its $500 million acquisition of Care.com.[71]

In July 2020, IAC and Match Group announced the successful completion of the separation of Match Group from the remaining businesses of IAC. As a result of the separation, Match Group's dual class voting structure was eliminated and the interest in Match Group formerly held by IAC is now held directly by IAC's shareholders. As of the separation, "new" IAC trades under the symbol "IAC" and "new" Match Group under the symbol "MTCH", both on Nasdaq.[72]

In August 2020, IAC announced[73] it had invested a 12% stake in MGM Resorts International.

In May 2021, IAC completed the spin-off of Vimeo, the 11th company to be spun-off from IAC.[74] Vimeo trades on Nasdaq under the symbol "VMEO".

In October 2021, IAC announced the acquisition of Meredith Corporation's National Media Group for $2.7 billion. The deal closed December 1, 2021,[75] and the acquired Meredith (and the former Time Inc.) assets merged with IAC subsidiary Dotdash, forming a new entity called Dotdash Meredith.[76]

In August 2022, IAC officially changed its legal entity (IAC/InterActiveCorp) to reflect what it is actually called: IAC Inc. In October, IAC agreed to sell its workforce-as-a-service platform Bluecrew to EmployBridge[77] with IAC remaining a minority shareholder in Bluecrew's business.

Businesses

[edit]

IAC's businesses are categorized into distinct segments for the purposes of financial reporting. Those segments are labelled by the company as People Inc., Care.com, Search, and Emerging & Other. Each business listed may have multiple brands connected to it.

People Inc.

[edit]

People Inc., at the time known as About.com, was acquired by IAC in 2012. A few years later they renamed it Dotdash. In 2021, Meredith Corporation and Time Inc. merged into Dotdash, and it took the name Dotdash Meredith, before rebranding to its current name in 2025. It operates 40 brands, with 19 considered core properties. Time had previously merged with Warner Communications to form Time Warner in 1990. The company spun off Time in 2014, but kept the Time Warner name until it was renamed WarnerMedia after being acquired by AT&T in 2018.

Care.com

[edit]
[edit]

Emerging & Other

[edit]

Corporate affairs

[edit]

Board of directors

[edit]

IAC's board of directors consists of the following members:[7]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

IAC Inc.

View on Grokipedia
from Grokipedia

is an American focused on media, internet, and digital services, founded in 1995 by and headquartered in . The firm operates through subsidiaries that develop and manage online brands and products engaging millions of users daily, while maintaining a strategy of acquiring, incubating, and spinning off independent public companies, resulting in over ten such entities including , , and . Currently, IAC's core segments encompass Dotdash Meredith for digital publishing, for family care services, search and media operations, and emerging ventures, alongside strategic equity stakes in companies such as . Under Diller's ongoing leadership as chairman and senior executive, IAC has emphasized value creation through interactivity and technological innovation in consumer-facing digital ecosystems.

History

Origins and Formation (1995–1999)

In August 1995, Barry Diller acquired control of Silver King Communications Inc., a company operating 12 UHF television stations primarily affiliated with the Home Shopping Network (HSN) programming. Diller's Arrow Holdings invested $5 million in newly issued shares for a 20% equity stake and secured an option to purchase 70% of the voting stock from Tele-Communications Inc., the largest shareholder, positioning him as chairman and chief executive. This move laid the foundation for Diller's strategy to build a national interactive television network leveraging emerging digital commerce opportunities. On December 20, 1996, Silver King merged with in a $1.2 billion transaction, creating Inc. as the surviving entity publicly traded on the under the "." Diller assumed the roles of chairman and CEO of the combined company, which integrated Silver King's broadcast stations with 's direct-response television shopping operations, reaching approximately 70 million households. The merger aimed to capitalize on synergies in electronic retailing and positioned Inc. to expand beyond traditional into broader media and interactive services. In 1997, Inc. acquired Group for $640 million in stock, adding a leading online ticketing platform to its portfolio and marking an early pivot toward internet-enabled commerce. By mid-1998, the company purchased the , Sci-Fi Channel, and related assets from Co. for $1.45 billion, diversifying into cable programming and prompting a rebranding from Inc. to USA Networks Inc. to reflect its evolving focus on media convergence and digital interactivity. These steps under Diller's leadership transformed the entity from a shopping network operator into a multimedia holding company poised for the internet era.

Expansion and Acquisitions (2000s)

During the , USA Interactive—renamed InterActiveCorp in 2003 and later IAC/InterActiveCorp in 2004—expanded aggressively through acquisitions of online platforms, focusing on , , search, and amid post-dot-com recovery. This strategy, led by Chairman , aimed to consolidate fragmented internet sectors by integrating synergistic assets into a diversified portfolio, leveraging synergies in user traffic and technology. Key early moves included the January 2000 acquisition of Ingenious Designs, Inc., for approximately 190,000 shares of common stock, bolstering direct-response marketing capabilities, and the April 2000 purchase of Precision Response Corporation, enhancing customer acquisition services. In July 2001, the company acquired a controlling 75% stake in , an online travel booking platform, for about $1.6 billion in stock and cash, marking a pivotal entry into digital travel services; the remaining shares were purchased in 2003. This was followed in 2002 by the $578 million acquisition of Interval International, a exchange network, in cash and stock, and the $370 million cash purchase of Entertainment Publications, a discount coupon provider, to broaden and savings offerings. Travel-focused expansion continued into 2003 with the August acquisition of LendingTree, an online mortgage comparison service, and the September purchase of Hotwire.com, a discount travel site, alongside the $1.2 billion reacquisition of public shares in Hotels.com (originally Hotel Reservations Network, acquired earlier). In 2004, IAC added TripAdvisor for $212 million, enhancing user-generated travel content. The 2005 acquisition of Ask Jeeves, Inc., for $1.85 billion in cash and stock, strengthened search capabilities, rebranded later as IAC Search & Media. Later deals included Shoebuy.com and Connected Ventures (encompassing CollegeHumor and Vimeo) in 2006, expanding e-commerce and video, plus Tutor.com in January 2009 for online education. These transactions grew IAC's revenue from $2.2 billion in 2000 to over $5.1 billion by 2008, though integration challenges and market volatility tested returns.

Restructuring and Value-Unlocking Spin-offs (2010s)

In December 2010, IAC resolved a long-standing dispute with major shareholder over prior spin-offs, enabling the company to eliminate legal uncertainties and refocus on core operations. As part of this restructuring, Chairman stepped down as CEO, transitioning day-to-day leadership to Greg Blatt, who had headed the division, while Diller retained oversight as Chairman and senior executive. This leadership shift aimed to streamline management amid IAC's evolving portfolio of internet and media assets, allowing greater emphasis on high-growth segments like . A pivotal value-unlocking maneuver occurred in June 2015, when IAC announced plans to pursue an initial public offering for its dating businesses, consolidated under a new entity called The Match Group, encompassing platforms such as Match.com, Tinder, OkCupid, and Plenty of Fish. This separation created a distinct public company for the rapidly expanding dating sector, which had benefited from Tinder's user growth, while IAC maintained approximately 98% voting control through a dual-class share structure. The IPO, priced at $12 per share on November 19, 2015, raised nearly $400 million through the sale of 33.3 million shares, providing Match Group with independent access to capital markets for expansion without diluting IAC's overall control. Post-IPO, Match Group's market capitalization quickly surpassed $2.5 billion, reflecting investor enthusiasm for its subscriber revenue model—generating over $800 million annually by late 2015—separate from IAC's diversified holdings. This partial separation exemplified IAC's strategy of unlocking by isolating high-potential subsidiaries for focused valuation and growth, a tactic Diller had employed since the company's earlier divestitures. By year-end , IAC's ownership in represented a significant portion of its enterprise value, with the unit's performance driving IAC's stock appreciation amid broader sector gains. Subsequent internal adjustments, such as Joey Levin's appointment as IAC CEO in , further aligned leadership with the post-separation structure. No full spin-offs of other major units occurred during the decade, but the initiative set the stage for later complete separations, demonstrating causal efficacy in enhancing autonomy while preserving parent oversight.

Streamlining and Recent Transactions (2020–present)

In December 2020, IAC announced plans to spin off its video software business to shareholders via a share reclassification, aiming to unlock value from the unit's independent operations. The transaction was approved by shareholders in May 2021 and completed on , 2021, marking Vimeo's debut as an independent public company trading on under the ticker VMEO; this represented the 11th such spin-off from IAC since its formation. The separation allowed to pursue growth as a standalone entity focused on video hosting and software solutions, while IAC retained flexibility to allocate capital toward higher-return opportunities in its remaining portfolio. Following the Vimeo transaction, IAC continued efforts to refine its holdings, particularly with its home services platform (formerly a combination of HomeAdvisor and Angie's List, acquired and merged in prior years). In 2021, IAC had partially distributed shares in a restructured entity to shareholders, retaining a to support operational synergies. By November 2024, amid evaluations of portfolio efficiency, IAC began considering a full separation of to enable focused execution on home services amid competitive pressures. This culminated in a January 13, 2025, board approval for a tax-free spin-off of IAC's entire stake in , accompanied by reorganizations to streamline . The Angi spin-off proceeded with board finalization on March 7, 2025, and completion on March 31, 2025, via a special distributing approximately 0.5251 shares of per IAC share held. Post-separation, operated as a fully independent (: ANGI), positioned to pursue mergers, acquisitions, and talent strategies without IAC oversight, while subsequent equity restructurings at addressed post-spin capital needs. This divestiture further streamlined IAC's structure, concentrating resources on scalable segments like and caregiving platforms, consistent with its historical approach of value-unlocking separations to enhance shareholder returns.

Business Portfolio

Dotdash Meredith (People Inc.)

Dotdash Meredith, a digital and print media company owned by IAC Inc., operates as the company's primary consumer media segment, focusing on premium content brands targeted at specific audiences. Originally formed from IAC's 2012 acquisition of About.com from for $300 million, the platform rebranded to Dotdash in 2017, emphasizing vertical-specific informational content across categories like health, finance, and lifestyle. In October 2021, Dotdash announced its acquisition of Meredith Corporation's National Media Group for $2.7 billion in cash, at $42.18 per share, integrating established print and digital titles such as , Better Homes & Gardens, and Allrecipes to form Dotdash Meredith. The transaction closed on December 1, 2021, after regulatory approvals, combining Dotdash's data-driven digital properties with Meredith's legacy brands to target over 200 million monthly users. The combined entity generates primarily through , , licensing, and subscriptions, with digital channels comprising the majority of growth. In the fourth quarter of 2024, Dotdash Meredith reported of $522.1 million, a 10% increase year-over-year, driven by 10% growth in digital to $311 million and a 22% rise in licensing and performance marketing segments. Full-year 2024 adjusted EBITDA reached $295.2 million, with IAC forecasting $330 million to $350 million for 2025 amid shifts toward premium direct-sold over programmatic channels. In the second quarter of 2025, the company noted increases in premium ad despite declines in programmatic spending, reflecting a strategic pivot to higher-margin formats. Key brands include for finance, for health, and for entertainment, leveraging first-party data and SEO to drive traffic, though the merger faced initial challenges from ad market headwinds and traffic softness in 2022. On July 31, 2025, Dotdash Meredith rebranded its corporate name to People Inc., aligning with its flagship People magazine to emphasize consumer-focused media amid IAC's portfolio streamlining. As of 2025, it remains a wholly owned of IAC, contributing significantly to the parent's revenue through diversified content verticals, though print operations continue to represent a smaller, stabilizing portion of the mix. The prioritizes audience retention via authoritative, niche content over broad generalism, with Meredith's pre-acquisition print heritage providing subscription revenue that offsets digital ad volatility.

Care.com

Care.com operates as an facilitating connections between families seeking in-home care services—such as childcare, senior care, pet care, and —and independent caregivers or service providers. The platform enables users to search profiles, post jobs, and conduct s, primarily targeting consumers in the United States, , and select international markets. is generated mainly through subscription fees charged to families for premium access to enhanced search features, unlimited messaging, and priority listings, with additional income from caregiver services and employer partnerships for programs. IAC Inc. acquired in a transaction valued at approximately $500 million, announced on December 20, 2019, and completed via on February 11, 2020, through IAC's subsidiary Buzz Merger Sub Inc. The deal provided IAC entry into the caregiving sector, leveraging Care.com's established user base of millions of registered families and providers amid demographic trends like aging populations and dual-income households driving demand. Post-acquisition, Care.com has remained an operating subsidiary under IAC's portfolio, headquartered in , with integration focused on scaling operations without major structural changes reported. The platform has encountered regulatory challenges regarding transparency and consumer protection. In July 2020, Care.com agreed to a $1 million settlement with authorities over allegations of misrepresenting the scope and effectiveness of its background checks, which were marketed as comprehensive but often relied on limited databases excluding certain criminal records. More significantly, in August 2024, the (FTC) charged Care.com with systematically deceiving caregivers through inflated claims about job availability, potential , and ease of , as well as misleading families on provider ; the company settled for $8.5 million in refunds and injunctive relief to reform practices like automatic membership renewals and job listing authenticity. These actions highlight persistent issues in gig-economy platforms' marketing, where FTC investigations revealed discrepancies between promoted opportunities and actual outcomes, prompting monetary redress to affected consumers.

Search and Classifieds

IAC's Search segment primarily comprises the Ask Media Group, a portfolio of websites offering general search services and informational content, alongside a desktop software business that distributes search technology to partners and incorporates third-party advertising-supported applications. The segment generates revenue through , leveraging and technology to acquire and monetize user traffic across its platforms. Ask Media Group, the core of the Search operations, traces its origins to Ask Jeeves, founded in 1996 as a search engine, which was rebranded to in 2005 following IAC's acquisition of the company that year. Today, it operates a network of sites that collectively reach approximately 245 million unique users monthly worldwide, facilitating connections to relevant information via search functionalities and content aggregation. The group's model emphasizes algorithmic optimization and partnerships for traffic acquisition, rather than traditional organic search dominance, distinguishing it from larger competitors like . While IAC's portfolio has historically included classifieds-style marketplaces—such as local directories under CityGrid Media, which were integrated or divested in prior years—the current Search segment does not feature prominent standalone classified advertising platforms. Recent restructurings, including the 2025 spin-off of Angi Inc. (a home services classifieds and leads platform), have shifted such verticals away from core Search operations, leaving Ask Media Group as the primary focus for search-related activities. This segment contributed modestly to IAC's overall revenue in recent quarters, with emphasis on operational efficiency amid competitive pressures in digital advertising.

Emerging and Other Ventures

The Emerging and Other segment of IAC Inc. comprises a collection of smaller, developmental businesses focused on , healthcare , and content production, representing a minor portion of the company's overall operations. As of December 31, 2024, this segment generated revenue primarily from platforms such as Vivian Health, Bluecrew, and , though it has experienced revenue declines due to asset sales including Roofing on November 1, 2023, and Mosaic Group assets in 2024. The segment's Adjusted EBITDA has been negative, reflecting investments in growth amid market challenges, with forecasted 2025 revenue around $15 million and EBITDA losses of $5-10 million following the spin-off. Vivian Health operates as a healthcare connecting nurses and allied professionals with facilities, leveraging for job matching and ; it has shown growth in user but operates in a competitive sector with thin margins. Bluecrew provides on-demand solutions for light industrial and healthcare roles, emphasizing flexible workforce management through an app-based platform, though it contributes modestly to segment revenue. The Daily Beast functions as a digital and opinion outlet, publishing articles on , , and ; it has faced financial pressures, leading to cost-cutting measures and staff reductions in recent years. IAC Films engages in film and television production, supporting content creation for various platforms, while other holdings like Media focus on comedy and digital video content, though the latter has scaled back operations amid industry shifts toward short-form video. Newco serves as an incubator for early-stage initiatives, though specific details on active projects remain limited in public disclosures. The segment's strategy emphasizes experimentation and potential spin-offs, aligning with IAC's history of unlocking value from nascent ventures, but it remains a low-revenue contributor compared to core segments like Dotdash Meredith.

Spin-offs and Divestitures

Early Internet Asset Separations (Expedia, LendingTree)

In August 2005, IAC completed the spin-off of its travel booking subsidiary Expedia, Inc., distributing shares to IAC shareholders and enabling Expedia to trade independently on Nasdaq under the ticker EXPE. The transaction followed IAC's acquisition of a controlling stake in Expedia in 2002 and the remaining shares in 2003, integrating it with other travel assets like Hotels.com and Hotwire. Announced in December 2004 as a separation into two distinct public entities, the spin-off aimed to enhance shareholder value by allowing Expedia to operate with dedicated management focus on travel services, separate from IAC's broader portfolio, while adjusting executive incentives accordingly. The separation marked an early step in IAC's strategy to divest mature internet assets, reflecting Barry Diller's approach to unlocking value from acquisitions made during the dot-com era by isolating high-growth verticals. Post-spin-off, Expedia retained its domestic and international operations, positioning it as a standalone leader in online travel reservations amid rising competition in the sector. In 2008, IAC executed a broader restructuring by spinning off multiple units, including LendingTree, as part of a plan to divide into five independent public companies. LendingTree, acquired by IAC in May 2003 for $734 million in stock, operated as an online loan and real estate lead-generation platform, encompassing services like RealEstate.com, Domania, GetSmart, Home Loan Center, and iNest. The spin-off, announced in November 2007 and completed on August 21, 2008, rebranded the entity as Tree.com, Inc., with shares trading on Nasdaq under TREE, distributing fractional shares to IAC holders (one-thirtieth of a Tree share per IAC share). This separation, alongside others like and , continued IAC's pattern of shedding non-core holdings to streamline operations and capitalize on specialized market valuations, particularly in during a period of housing market turbulence. By isolating 's consumer-facing lending exchange model, IAC enabled focused expansion in and leads, free from conglomerate oversight.

Dating and Video Platform Spin-offs (Match Group, Vimeo)

IAC acquired in 1999 and subsequently expanded its dating portfolio through acquisitions, forming the foundation for what became , encompassing platforms such as , , and . In December 2013, IAC reorganized its online dating businesses under the entity, with IAC executive Greg Blatt appointed as chairman. On December 19, 2019, IAC announced a definitive agreement to fully separate , aiming to provide both entities with greater operational independence and strategic flexibility. The separation was completed on July 1, 2020, resulting in operating as a standalone with a of approximately $30 billion at the time—the largest such divestiture in IAC's history. IAC entered the video sector by acquiring a controlling stake in Connected Ventures, which included , for $26 million in 2006. Under IAC ownership, pursued growth through acquisitions, including Livestream in 2017 to enhance live video capabilities and in 2019 for tools. On December 22, 2020, IAC's board approved the spin-off of its full ownership in to shareholders, continuing IAC's pattern of separating mature businesses to unlock shareholder value. Shareholders approved the transaction on May 14, 2021, and it was completed on May 25, 2021, with commencing trading on under the ticker VMEO. This marked the eleventh to emerge from IAC via spin-off. These spin-offs aligned with IAC's long-term of incubating and then divesting subsidiaries to allow focused and capitalize on distinct market dynamics in and video platforms, respectively. Post-separation, retained its position as a leader in with millions of subscribers, while Vimeo positioned itself as an enterprise-oriented video software provider amid competition from platforms like .

Home Services and Recent Separations (Angi, Turo)

IAC's home services business centered on Angi Inc., a platform connecting homeowners with local service professionals for repairs, renovations, and maintenance. The company traces its roots to IAC's HomeAdvisor subsidiary, launched in 1999 as a lead-generation service for home service providers. In May 2017, IAC merged HomeAdvisor with Angie's List—a consumer review site founded in 1995—to form ANGI Homeservices Inc., creating a combined entity with over 45 million annual service requests and a network of more than 200,000 professionals. This merger positioned ANGI as a leader in the $500 billion U.S. home services market, with IAC retaining a controlling 87% stake post-IPO in October 2017. The platform rebranded to Angi in March 2021, emphasizing end-to-end home care solutions including instant booking, vetted pros, and financing options. Under IAC's ownership, Angi expanded through acquisitions like Handy (on-demand cleaning and handyman services) in 2018 and integrated AI-driven matching to improve lead quality, though it faced challenges from high customer acquisition costs and competition from platforms like Thumbtack. By 2024, Angi reported $1.3 billion in revenue, primarily from service fees and advertising, but struggled with profitability amid macroeconomic pressures on . IAC's board approved the spin-off of its full ownership in Angi on March 7, 2025, declaring a special distributing approximately 0.5 shares of Angi per IAC share to shareholders of record on March 25, 2025. The transaction completed on March 31, 2025, eliminating Angi's dual-class share structure and allowing it to operate independently, with IAC shareholders receiving direct ownership of the distributed shares. This separation unlocked value for IAC investors, as Angi's market cap hovered around $1.25 billion pre-spin, representing a modest portion of IAC's portfolio amid broader streamlining efforts. In parallel with home services developments, IAC maintained a significant minority stake in Turo Inc., a car-sharing marketplace often likened to " for cars." IAC invested $250 million in July 2019, acquiring approximately 25% ownership and becoming Turo's largest shareholder, with the funding aimed at scaling the platform's inventory of over 14 million vehicles and international expansion. By 2025, IAC's stake had grown to about 31%, bolstered by a warrant exercisable at a $2 billion valuation, positioning Turo as a potential value driver through an anticipated IPO valued at $3 billion or more. Unlike , Turo has not undergone separation from IAC; it remains an unconsolidated equity investment, with Turo pausing its public offering plans in February 2025 amid market volatility. This holding reflects IAC's strategy of nurturing high-growth ventures in the , though without the structural unlock of a spin-off.

Corporate Governance

Leadership and Barry Diller's Role

serves as Chairman and Senior Executive of IAC Inc., positions he has held since founding the company's modern incarnation in 1995. Following the resignation of CEO on January 13, 2025, after a decade in the role, Diller assumed direct oversight of IAC's operations, with the company's CFO Christopher Halpin, COO Edward Ferguson, and Chief Legal Officer Kendall Handler reporting to him; no successor CEO was appointed. Levin's departure coincided with the planned spin-off of IAC's remaining stake in , reflecting Diller's strategic direction for portfolio optimization. Diller's leadership emphasizes value creation through acquisitions, spin-offs, and capital deployment, drawing on his experience transforming IAC from a entity into a serial incubator of businesses. He previously served as IAC's CEO until late , during which period the company executed major separations including and . At age 83 as of 2025, Diller remains actively involved in high-level decisions, including responses to and evaluations of emerging ventures, though critics have questioned operational execution under his influence. The executive team under Diller includes specialized roles such as Executive Vice President Russell Farscht for and Lauren Geer, supporting IAC's focus on , search, and services segments. Diller's tenure has prioritized long-term dynamics over short-term earnings, enabling flexibility in deploying over $1 billion in cash reserves for opportunistic investments as of mid-2025. This approach stems from his conviction in identifying undervalued assets, as evidenced by stakes in Dotdash Meredith and , though it has drawn scrutiny for diluting focus amid market volatility.

Board Composition and Control Mechanisms

IAC's board of directors comprises 11 members as of April 2025, chaired by Barry Diller, who also serves as senior executive, with Joey Levin as chief executive officer. Other key figures include Vice Chairman Victor Kaufman and independent directors such as Chelsea Clinton, Michael Eisner, and Bryan Lourd, reflecting a blend of media executives, investors, and public figures with ties to IAC's historical operations in entertainment and internet ventures. The board maintains standard committees, including audit, compensation, and governance/nominating, chaired by independent members like Tor Braham, who was nominated in April 2025 to enhance oversight amid ongoing shareholder scrutiny. Control mechanisms at IAC center on a dual-class structure that concentrates voting power. Class B shares, primarily held by Diller, carry 10 votes per share, compared to one vote for Class A shares, allowing Diller to control approximately 44% of total voting power with under 8% of economic equity as of recent analyses. This structure, inherited from IAC's evolution as a serial acquirer and spinner, enables Diller to direct board elections and strategic decisions, including spin-offs, without proportional economic risk. Efforts to perpetuate this control, such as a 2016 proposal to issue additional super-voting shares for heirs, were blocked by ruling in favor of shareholders challenging dilution of voting rights. While the board includes nominally independent directors meeting exchange listing standards, Diller's voting dominance limits their countervailing influence, a feature common in founder-controlled media and tech holdings but criticized for reducing to public shareholders. No time-based sunset on super-voting rights exists, sustaining long-term control absent voluntary changes or success, as evidenced by recent investor pushes for reforms in 2025.

Shareholder Activism and Responses

In April 2025, Arkhouse Management Co. LP, an activist investment firm, disclosed a significant stake in IAC Inc. and initiated engagement with the company to address perceived undervaluation of its assets. Arkhouse, led by managing partner Gavriel Kahane, focused on unlocking shareholder value amid IAC's shares trading at a substantial discount to the sum-of-the-parts value of its holdings, including a 23% stake in MGM Resorts International and the Dotdash Meredith publishing business. IAC responded through constructive dialogue, culminating in the nomination of Tor R. Braham, a former tech investment banker with expertise in capital markets, to its on April 29, 2025, ahead of the annual stockholder meeting. The company described the addition as enhancing governance following discussions with Arkhouse, without disclosing the exact stake size or specific demands beyond board refreshment. Arkhouse publicly welcomed the move, emphasizing collaborative efforts to improve outcomes rather than confrontation. Arkhouse advocated for accelerated share repurchases to mitigate the discount, while expressing support for IAC's long-term strategy of spinning off non-core assets to streamline operations and realize value, as evidenced by recent separations like Angi Inc. in April 2025. In its first-quarter 2025 earnings release on May 6, 2025, IAC acknowledged the market's undervaluation, stating shares traded below the intrinsic value of select investments, signaling alignment with activist concerns on capital allocation without committing to specific changes. This engagement marked a relatively amicable resolution compared to more adversarial campaigns, with no proxy contest pursued by Arkhouse as of October 2025.

Financial Performance

Revenue Streams and Segment Breakdown

IAC Inc.'s revenue is generated through its core operating segments, including People Inc. (formerly Dotdash Meredith, rebranded on July 31, 2025), , Search, and Emerging and Other ventures, with streams primarily comprising advertising, subscriptions, performance marketing, licensing, and affiliate revenues. In the first quarter of 2025, reached $570.5 million, reflecting contributions from digital and print media operations, family care services, and legacy . By the second quarter of 2025, consolidated declined 7% year-over-year to $586.9 million, influenced by segment-specific dynamics such as growth in digital channels offset by print declines.
SegmentQ1 2025 Revenue ($M)Key Revenue Streams
People Inc.393.1Digital advertising ($134.6M), performance marketing ($57.3M), licensing ($32.4M), print media ($173.8M) from subscriptions and ads across brands like , Better Homes & Gardens, and .
Care.com88.9Consumer subscriptions ($47.5M) from families and caregivers for matching services; enterprise revenue ($41.3M) from employer benefit programs.
Search70.3Advertising and affiliate fees via Ask Media Group ($57.7M) and desktop products ($12.6M).
Emerging & Other18.3Diverse sources from minority investments and early-stage ventures, including apps and services under Mosaic Group.
People Inc. represents the largest segment, deriving from a mix of high-margin digital formats—such as display and video ads, sponsored content, and affiliate commissions—and traditional and , though digital channels grew 9% year-over-year in Q2 2025. Care.com's model emphasizes recurring subscriptions, with domestic and international consumer fees driving volume amid competitive family care markets. The Search segment relies on cost-per-click and partnerships, facing headwinds from reduced and competition from dominant engines. Emerging and Other contributes modestly but supports IAC's of incubating prior to potential spin-offs or , with variability tied to product launches and user acquisition. Inter-segment eliminations remain negligible at -$0.1 million quarterly. IAC's profitability has been characterized by volatility, with net losses in recent years amid a shrinking operational footprint following spin-offs, though adjusted metrics indicate underlying operational viability. For the ending June 30, 2025, the company reported of $3.71 billion, gross profit of $2.75 billion (a of approximately 74%), EBITDA of $361.98 million, and a net loss of $479.89 million, yielding a net of -12.9% and diluted EPS of -$5.58. These figures reflect persistent operating losses in segments like and Dotdash Meredith, offset partially by equity earnings from retained stakes but eroded by impairments and corporate overhead. Historical trends show a deterioration in net profitability, transitioning from profits driven by growth and divestiture gains to consistent losses post-2022. In 2022, IAC posted consolidated of $570.66 million, supported by strong contributions from legacy assets and equity method investments. This shifted to $289.87 million in 2023 and further losses in 2024, attributed to segment declines, higher content costs at Dotdash Meredith, and non-cash charges exceeding $500 million annually in recent periods. Operating margins have compressed, with normalized EBIT turning negative at -$203.19 million in the latest , while stands at -7.83% and at -6.09%, signaling inefficient capital utilization amid a high load.
YearRevenue ($B)Net Income ($M)Net Margin (%)
20212.87203.107.1
20224.66570.6612.2
20234.37289.876.6
20243.95(est. loss)-
Data derived from annual reports; 2024 net income reflects ongoing losses per TTM trends. Despite challenges, adjusted EBITDA has remained positive, reaching levels supportive of cash generation before non-recurring items, as evidenced by Q2 2025 results where EPS of $2.57 exceeded forecasts of -$0.29, driven by cost controls and one-time gains. However, year-over-year revenue contraction of -7.5% underscores structural pressures from mature markets and reduced scale, with profitability hinged on successful of remaining assets like and potential further divestitures rather than organic growth. This pattern aligns with IAC's model, where irregular equity income and impairment volatility dominate earnings, prioritizing long-term value over consistent quarterly profits.

Capital Allocation: Repurchases and Debt Management

IAC Inc. has pursued an active program as a core element of its capital allocation strategy, particularly following spin-offs that simplify its structure and generate excess cash. This approach aligns with the company's philosophy of deploying capital opportunistically when its stock trades at a discount to intrinsic value, thereby enhancing shareholder returns. Between February 12, 2025, and May 2, 2025, IAC repurchased 4.5 million shares for $200 million, representing approximately 4.5% of its outstanding shares at the time. On March 16, 2025, the board authorized an additional 10 million shares for repurchase, increasing the total authorization to about 10.2 million shares. Earlier, in August 2024, IAC announced a program to repurchase up to 25 million shares, underscoring a consistent pattern of buybacks to offset dilution and signal confidence in undervaluation. By August 2025, the company had completed a $451 million buyback , further demonstrating disciplined execution amid market volatility. These repurchases are funded primarily from operational cash flows and proceeds from asset separations, avoiding excessive leverage at the parent level. Historical precedents include ongoing authorizations dating back to 2016, with over 8 million shares remaining available as of late 2018, reflecting a long-term commitment to this tactic under Chairman Barry Diller's oversight. Post-spin-off of Angi Inc. in Q1 2025, IAC accelerated buybacks to capitalize on perceived mispricing, with the program designed to be flexible and not time-bound, allowing purchases via open market or private transactions. This strategy has reduced share count over time, potentially boosting earnings per share, though critics note it depends on sustained cash generation from remaining assets like Dotdash Meredith and MGM Resorts stakes. Regarding debt management, IAC maintains a conservative profile at the level, prioritizing for investments and buybacks over high leverage. As of Q2 2025, long-term stood at $1.45 billion, primarily obligations of subsidiaries such as People Inc. (affiliated with Dotdash Meredith), rather than the parent entity. The company has restructured subsidiary to extend maturities and lower costs; for instance, in June 2025, Dotdash Meredith issued $400 million in 7.625% senior secured notes due 2032, prior obligations and providing $1.18 billion in total through extended terms. This move reduced immediate pressure while supporting operational investments. In November 2024, a secured favorable amendments, reflecting proactive of moderate levels to preserve flexibility. IAC's debt strategy emphasizes strength post-spin-offs, with a focus on building cash reserves for or further repurchases, as evidenced by efforts to "slim down" the portfolio and exploit M&A opportunities. Historically, the company has raised strategically for value-unlocking transactions, such as the $2 billion issuance in to facilitate spinoffs, but current practices avoid parent-level to maintain optionality. Overall, this dual approach—aggressive repurchases paired with subsidiary-focused, non-recourse —supports long-term value creation while mitigating risks from market shifts in its media and hospitality holdings.

Controversies and Criticisms

Governance Disputes and Nepotism Claims

In 2008, IAC faced a significant dispute with Corporation, its largest shareholder at the time, over control of the company and the proposed spin-off of subsidiaries including and Inc. Liberty, holding all high-voting stock and a majority of votes but having granted CEO an irrevocable proxy, challenged the spin-offs as a breach of duties intended to dilute its influence. A Chancery Court ruled in Diller's favor on , 2008, allowing the separations to proceed without Liberty's consent, citing that the proxy granted Diller broad authority and the moves aligned with IAC's corporate strategy. Liberty appealed, seeking Diller's removal from the board along with six directors for alleged breaches, but the dispute underscored criticisms of IAC's dual-class structure enabling concentrated control by Diller despite owning less than 8% of equity but over 44% of votes pre-spin. Shareholder activism has periodically targeted IAC's , particularly Diller's enduring influence through agreements and board composition. In 2017, sued IAC challenging a pact that afforded Diller power over key decisions and board changes, arguing it entrenched control and undermined voting ; the case resulted in a settlement modifying the agreement to enhance investor protections. More recently, in 2025, activist investor Arkhouse Management pressured IAC for board refreshment and strategic overhaul, leading to the nomination of Tor Braham, a former tech banker, to the board amid broader critiques of stagnant and undervaluation under Diller's oversight. Similarly, investor Gavriel Kahane advocated for changes without directly confronting Diller, focusing on operational and structural reforms to address perceived entrenchment. Nepotism claims have centered on a proposed incentive plan criticized by s as designed to perpetuate Diller control. In a filed by IAC investors, plaintiffs accused Diller and the board of breaching duties through a plan allowing Diller to retain voting influence indefinitely, including post-retirement or death, ostensibly benefiting his and insiders over broader s. The alleged the structure prioritized personal dynasty-building, with Diller's less than 8% equity stake enabling outsized perpetual authority via high-vote shares transferable within his . These allegations tie into broader pacts, such as the 2016 amended agreement among IAC, Diller, and affiliates, which formalized control mechanisms post-spin-offs but drew for embedding familial succession elements without sufficient safeguards. No criminal findings emerged, but the suit highlighted tensions between Diller's strategic vision and claims of self-perpetuating in a context.

Litigation Over Spin-offs and Asset Valuations

In July , IAC/InterActiveCorp completed a multi-step reverse spin-off transaction separating its dating business subsidiary, , Inc., from its other operations, resulting in becoming fully independent while IAC retained significant voting control through a dual-class structure. The transaction allowed IAC, which held approximately 24.9% of 's equity but 98.2% of its voting power pre-separation, to maintain voting influence post-spin-off, prompting allegations that the deal shortchanged minority investors by prioritizing IAC's control over fair economic valuation. Derivative litigation ensued in the , with plaintiffs claiming breaches of fiduciary duty by IAC's controller, , and dual-fiduciary directors serving both IAC and , arguing the separation's terms failed entire fairness review due to inadequate protections for minority shareholders in the and voting retention. In September 2022, the Chancery Court dismissed the claims, applying the under the MFW framework after finding an independent special committee and majority-of-minority vote cleansed the transaction of conflicts, despite the controller's involvement. However, the partially reversed this in April 2024, ruling that dual-fiduciary directors created irreconcilable conflicts, disqualifying MFW protection and subjecting the deal to entire fairness scrutiny, thereby reviving claims over the spin-off's fairness and implied asset undervaluation for non-controlling interests. The case highlighted tensions in IAC's spin-off strategy, where retaining disproportionate control in separated entities—valued at the time as preserving long-term oversight but criticized for diluting economic value to public shareholders—led to protracted disputes. In June 2025, IAC agreed to a $30 million cash settlement to resolve the outstanding claims, pending Chancery approval, with the payment directed to to compensate for alleged harms from the transaction's structure, effectively acknowledging risks in the valuation and control dynamics without admitting liability. This resolution underscored recurring shareholder scrutiny of IAC's asset separations, where empirical post-spin performance (e.g., Group's market cap growth versus IAC's retained stakes) fueled arguments that control premiums masked undervaluations, though courts emphasized procedural safeguards over retrospective market outcomes. Earlier precedents, such as the 2008 dispute with over IAC's planned spin-offs of , , Inc., and Interval Leisure Group, involved challenges to control mechanisms rather than direct valuation disputes, culminating in a settlement allowing the separations to proceed with board representation concessions for , avoiding litigation on . Unlike the litigation, these older cases focused on governance veto rights under IAC's dual-class structure, not explicit claims of economic shortchanging, reflecting evolving judicial emphasis on fiduciary conflicts in modern spin-off valuations. No major ongoing suits over recent spin-offs like Angi's March 2025 separation have contested valuations, though market reactions to post-spin declines in spun entities have echoed prior undervaluation critiques without formal legal escalation.

Activist Investor Challenges and Strategic Critiques

In April 2025, activist investor Arkhouse Management Co. LP disclosed a significant stake in IAC Inc. and initiated engagement with the company, focusing on unlocking shareholder value amid a perceived substantial discount to intrinsic value. Arkhouse's managing partner, Gavriel Kahane, estimated IAC's breakup value at $72 per share, contrasting with its trading price of approximately $38 as of late October 2025, attributing the gap to market undervaluation of assets including a 22.5% stake in MGM Resorts International valued at around $2 billion, stakes in Turo, and ownership of 40 publications such as People magazine. The firm nominated former tech banker Tor R. Braham to IAC's board, a move accepted on April 29, 2025, following "constructive engagement," which IAC described as productive collaboration rather than adversarial pressure. Arkhouse's challenge highlighted operational headwinds, noting IAC's first-quarter 2025 revenue decline of 9% year-over-year to $936 million, though adjusted operating profits surged 166% to $55 million due to cost reductions, alongside $1.2 billion in cash reserves against a $3 billion . Kahane emphasized a non-confrontational approach, stating the firm was "not challenging " but viewing IAC as a "compelling risk-adjusted opportunity" to address the valuation dislocation through strategic actions like potential asset sales or restructurings. IAC's response included acknowledging the discount in statements, with committing to initiatives to bridge the gap between market price and asset values. Broader strategic critiques of IAC's model center on its persistent conglomerate discount, where the sum-of-the-parts valuation exceeds the price by 50-90%, signaling toward centralized oversight and capital allocation efficiency. Critics argue that despite successful spin-offs like and , the model has faltered in recent years due to operational missteps in retained segments, such as Dotdash Meredith's ad revenue pressures and Angi Inc.'s stagnant growth, eroding trust in management execution. This structure, reliant on Diller's voting control via super-voting shares, is faulted for insulating the company from market discipline, potentially discouraging aggressive value-unlocking moves and contributing to share price underperformance, with IAC's down over 25% in the year ending October 2025. While proponents credit the model for opportunistic investments, detractors contend it prioritizes long-term bets over short-term returns, as evidenced by limited buybacks relative to cash holdings and selective spin-off timing.

Strategic Model and Impact

Holding Company Philosophy and First-Principles Approach

IAC Inc. functions as a serial incubator of digital and internet-focused businesses, acquiring early-stage or undervalued assets, scaling them through operational expertise and capital deployment, and frequently spinning off mature entities to realize independent value for shareholders. This model, shaped by Chairman and Senior Executive Barry Diller since the company's origins in the 1990s, prioritizes decentralized management where subsidiary leaders retain autonomy, minimizing bureaucratic interference while leveraging IAC's oversight for strategic guidance and resource allocation. The approach avoids the pitfalls of traditional conglomerates by eschewing forced synergies across unrelated units, instead concentrating on high-conviction bets in sectors like media, e-commerce, and software, as evidenced by spin-offs such as Expedia in 2005, LendingTree in 2008, and Angi in 2021. Central to IAC's philosophy is a commitment to "financially-disciplined opportunism," involving rigorous evaluation of investment opportunities based on intrinsic business fundamentals—such as scalable revenue models, market positioning, and growth potential—rather than speculative trends or diversified empire-building. Diller has articulated this as building companies from the ground up, drawing on decades of media and tech experience to identify undervalued assets and nurture them toward public market readiness, often exiting via spin-offs when standalone valuation exceeds holding benefits. This contrasts with passive holding strategies by emphasizing active value creation through targeted interventions, like leadership changes or tech integrations, grounded in assessments of causal drivers like user acquisition costs and lifetime value. The first-principles orientation manifests in IAC's capital allocation decisions, which prioritize empirical metrics over conglomerate premiums: for instance, the company has executed over 10 spin-offs since 2003, reflecting a foundational view that true economic value accrues when businesses operate unencumbered by parent oversight, as cross-subsidiary dependencies rarely justify complexity costs. Diller's oversight, maintained through super-voting shares, ensures alignment with this ethos, focusing on long-term compounding via opportunistic buys—such as the acquisition of Meredith Corporation's assets—while maintaining low corporate overhead, with IAC's own expenses historically under 2% of portfolio enterprise value. This disciplined framework has enabled the creation of entities collectively valued in excess of $100 billion at spin-off peaks, underscoring a realist appraisal of market dynamics over optimistic aggregation.

Market Impact and Long-Term Value Creation

IAC's holding company structure, emphasizing the incubation of internet and media ventures followed by strategic spin-offs, has demonstrably enhanced shareholder value over decades by allowing independent entities to pursue focused growth unencumbered by conglomerate oversight. From its origins in 1995, IAC's total shareholder return, inclusive of spin-off distributions, has achieved an annualized rate of 15.3%, surpassing the S&P 500's comparable performance during that period. Notable early successes include precursors to eBay and PayPal, which delivered post-spin returns of 138% and 395%, respectively, far exceeding S&P 500 benchmarks, thereby illustrating how separations unlocked operational efficiencies and market-specific capital attraction. This approach has exerted broader market influence by seeding scalable digital platforms that reshaped consumer sectors, such as online travel through 's 2005 spin-off, where the transaction allocated value splits of approximately 56% to IAC and 44% to shareholders, enabling the latter's subsequent expansion into a dominant industry player. Similarly, spin-offs like have bolstered the digital dating economy, while advanced video hosting capabilities, collectively contributing to IAC's legacy of fostering innovation in high-growth domains. The 2025 spin-off, distributing 0.5251 shares per IAC share on April 1, exemplifies ongoing efforts to crystallize value, eliminating dual-class structures and redistributing home services assets directly to shareholders for potential re-rating and operational agility. Long-term value creation persists through IAC's concentrated portfolio, including a 23% stake in Resorts acquired for $1.3 billion, which as of mid-2025 represents a substantial portion of its estimated $6 billion —exceeding its $3.2 billion —and positions the company for upside via potential or further spin catalysts. Despite short-term total shareholder returns lagging the (e.g., -24.25% over the past 12 months ending October 2025 versus +14.85%), the model's emphasis on capital-efficient incubation and divestitures has historically compounded value, with compound annual growth rates from 1996 to 2017 roughly double the index's 6.9%. This framework, under Barry Diller's stewardship, prioritizes asset optimization over perpetual retention, yielding sustained economic impact through diversified, high-conviction bets in media and .

Challenges from Market Shifts and Regulatory Environment

IAC's portfolio companies, particularly in digital media and advertising, have encountered headwinds from evolving market dynamics, including the rise of artificial intelligence tools that divert web traffic from traditional publishers. In Q2 2025, IAC's Dotdash Meredith segment reported revenue misses attributed to Google AI Overviews reducing organic search referrals, leading to a 2.4% shortfall against analyst estimates and contributing to a 13% post-earnings stock decline. This AI-driven shift has pressured digital ad monetization, with IAC noting choppy conditions despite 5% advertising growth in the quarter, as core session growth of 2% failed to fully offset declining traffic trends. Broader economic pressures have compounded these issues, with U.S. consumer confidence dropping to its lowest since April 2025 in September, posing risks to discretionary spending and digital revenue streams reliant on user engagement. Trade tensions, including threats of heightened U.S. tariffs on Chinese imports, further eroded investor sentiment toward IAC's valuation in October 2025, amplifying a one-year total shareholder return of -24.6% amid persistent digital ad market softness. These market shifts highlight vulnerabilities in IAC's model, where reliance on traffic-dependent businesses exposes it to technological disruptions and cyclical downturns without the diversification buffers of its prior spin-offs. On the regulatory front, IAC faces ongoing scrutiny over data privacy, antitrust compliance, and consumer protection, with laws like the and constraining targeted advertising practices central to subsidiaries such as Dotdash Meredith. In August 2024, the settled with an IAC subsidiary for $8.5 million over allegations of deceptive worker practices, underscoring enforcement risks in labor and operational disclosures, though the company did not admit wrongdoing. For , prior to its April 1, 2025 spin-off, a court-vacated SEC rule on prompted short-term market disruptions and product overhauls, delaying revenue recovery into Q1 2025. IAC's internal antitrust guidelines emphasize vigilance against anti-competitive conduct, reflecting broader tech sector pressures, as articulated by CEO in 2021 warnings about platform dominance akin to Apple's policies. These regulatory demands increase compliance costs and limit data utilization, potentially hindering growth in ad-reliant segments.

References

  1. https://www.forbes.com/profile/barry-diller/
  2. https://www.iac.com/
  3. https://www.iac.com/about-us
  4. https://www.reuters.com/markets/companies/IAC.O
  5. https://www.prnewswire.com/news-releases/iac-completes-spin-off-of-angi-now-an-independent-company-302416907.html
  6. https://www.iac.com/leadership/barry-diller
  7. https://www.iac.com/history
  8. https://www.upi.com/Archives/1995/08/25/Diller-will-take-over-Silver-King/6109809323200/
  9. https://www.nytimes.com/1995/08/26/business/diller-gets-the-nod-to-head-network-in-waiting.html
  10. https://www.sec.gov/Archives/edgar/data/791024/0000950144-96-009248.txt
  11. https://www.fundinguniverse.com/company-histories/usa-interactive-inc-history/
  12. https://skift.com/2016/06/08/oral-history-of-online-travel-barry-dillers-deals-built-a-travel-empire/
  13. https://www.annualreports.com/HostedData/AnnualReportArchive/i/NASDAQ_IACI_2001.pdf
  14. https://mergr.com/transaction/iac-acquires-expedia
  15. https://www.sec.gov/Archives/edgar/data/891103/000104746905016370/a2159074zs-4a.htm
  16. https://www.marketwatch.com/story/usa-interactive-buys-interval-for-578-mln-cash-stock
  17. https://www.nytimes.com/2002/11/22/business/the-media-business-usa-interactive-agrees-to-buy-publisher.html
  18. https://ir.iac.com/static-files/a22417cc-e21c-45eb-a9dd-943039729396
  19. https://techcrunch.com/2011/12/21/tripadvisor-spins-off-from-expedia-takes-flight-on-the-nasdaq-as-a-public-company/
  20. https://www.annualreports.com/HostedData/AnnualReportArchive/i/NASDAQ_IACI_2014.pdf
  21. https://www.zippia.com/iac-careers-5764/history/
  22. https://www.iac.com/press-releases/iac-acquires-online-tutoring-service-tutorcom
  23. https://content.edgar-online.com/ExternalLink/EDGAR/0001047469-09-002040.html?hash=bdff4990755b9924ab8652b80919292f6ee0ce054f46e9b413e64845a0de0b64&dest=A2190666ZEX-10_7_HTM
  24. https://www.cnbc.com/2008/05/13/iac-liberty-media-resolve-dispute-over-spinoffs.html
  25. https://www.wsj.com/articles/SB10001424052748703377504575650513473454090
  26. https://dealbook.nytimes.com/2010/12/02/diller-steps-down-as-c-e-o/
  27. https://www.iac.com/press-releases/iac-announces-intent-to-pursue-ipo-of-the-match-group-appoints-joey-levin-ceo-of-iac
  28. https://www.prnewswire.com/news-releases/iac-and-match-group-announce-closing-of-initial-public-offering-300184007.html
  29. https://www.bloomberg.com/news/articles/2015-11-19/diller-s-match-group-raises-400-million-in-online-dating-ipo
  30. https://www.prnewswire.com/news-releases/match-group-announces-pricing-of-initial-public-offering-300181534.html
  31. https://ir.iac.com/static-files/ccfcccbb-8860-4bf0-931f-b4ac7d4b8674
  32. https://www.prnewswire.com/news-releases/iac-announces-new-segments-and-new-ticker-symbol-300207662.html
  33. https://ir.iac.com/news-releases/news-release-details/iac-announces-plan-spin-vimeo-iac-shareholders
  34. https://ir.iac.com/news-releases/news-release-details/iac-stockholders-approve-vimeo-spin
  35. https://investors.vimeo.com/news-releases/news-release-details/iac-completes-spin-vimeo
  36. https://www.forbes.com/sites/joecornell/2021/08/09/iac-keeps-growing-after-vimeo-spinoff/
  37. https://hightechinvesting.substack.com/p/bye-bye-iac-what-the-spin-off-means
  38. https://www.reuters.com/default/iac-weighs-home-services-unit-angis-spin-off-dotdash-meredith-drives-revenue-2024-11-12/
  39. https://ir.iac.com/news-releases/news-release-details/iac-announces-plan-spin-angi-reorganizes-leadership
  40. https://ir.iac.com/news-releases/news-release-details/iac-completes-spin-angi-now-independent-company
  41. https://www.tradingcalendar.com/post/iac-announces-spin-off-of-angi-inc-what-investors-need-to-know-iac-angi
  42. https://www.investing.com/news/sec-filings/angi-inc-completes-equity-restructuring-postiac-spinoff-93CH-3961593
  43. https://www.forbes.com/sites/joecornell/2025/05/07/iacs-recent-spin-of-angi-sharpens-focus/
  44. https://variety.com/2021/digital/news/meredith-acquired-iac-dotdash-1235082548/
  45. https://ir.iac.com/news-releases/news-release-details/iacs-dotdash-acquire-meredith-corporations-national-media-group
  46. https://www.prnewswire.com/news-releases/iacs-dotdash-announces-close-of-meredith-transaction-301435581.html
  47. https://www.midlandco.com/pending-meredith-acquisitions-by-gray-and-iacs-dotdash-receive-regulatory-approvals/
  48. https://x.com/ViperChill/status/1890015477302440047
  49. https://www.ainvest.com/news/dotdash-meredith-strategic-debt-refinancing-pillar-iac-financial-flexibility-2506/
  50. https://www.amediaoperator.com/news/dotdash-meredith-ekes-out-revenue-gain-as-traffic-slips-in-uncertain-environment/
  51. https://pressgazette.co.uk/media_business/dotdash-meredith-now-people-inc-says-premium-ads-up-as-programmatic-declines/
  52. https://www.adexchanger.com/publishers/dotdash-meredith-merger-marred-by-weak-traffic-and-a-pullback-in-ad-spend-during-q3/
  53. https://deadline.com/2025/07/barry-diller-dotdash-meredith-changes-name-people-media-brand-1236468525/
  54. https://ir.iac.com/static-files/84f3b67e-1299-4561-b33d-f9310e16127a
  55. https://flashesandflames.com/2025/08/08/how-meredith-saved-dotdash/
  56. https://www.iac.com/press-releases/iac-announces-agreement-to-acquire-care-com
  57. https://www.sec.gov/Archives/edgar/data/1412270/000104746913011159/a2217607zs-1.htm
  58. https://www.iac.com/press-releases/iac-announces-close-of-500-million-care-com-acquisition
  59. https://pitchbook.com/profiles/company/40843-54
  60. https://www.wsj.com/articles/care-com-to-pay-1-million-to-settle-allegations-over-misrepresented-background-checks-11594845587
  61. https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-takes-action-against-carecom-deceiving-caregivers-about-wages-availability-jobs-its-site
  62. https://www.reuters.com/legal/carecom-reaches-85-million-settlement-with-us-ftc-over-membership-renewals-2024-08-26/
  63. https://markets.ft.com/data/equities/tearsheet/profile?s=IAC:NSQ
  64. https://www.morningstar.com/stocks/xnas/iac/quote
  65. https://www.askmediagroup.com/about
  66. https://www.askmediagroup.com/
  67. https://www.iac.com/brands/askcom
  68. https://www.cnbc.com/2025/01/13/iac-approves-spinoff-of-home-improvement-marketplace-angi.html
  69. https://ir.iac.com/static-files/d3444e24-10e7-4d85-acc2-f6a9c8a57283
  70. https://www.sec.gov/Archives/edgar/data/1800227/000180022724000035/ex_991q22024iac-pressrelea.htm
  71. https://www.forbes.com/companies/iac-interactivecorp/
  72. https://www.tradingview.com/symbols/NASDAQ-IAC/financials-overview/
  73. https://www.expediagroup.com/media/media-details/2005/Iac-Completes-Spin-off-Of-Expedia-Inc/
  74. https://www.sec.gov/Archives/edgar/data/891103/000104746905006738/a2153253z10-k.htm
  75. https://www.nbcnews.com/id/wbna6741112
  76. https://www.iac.com/press-releases/iac-announces-plan-to-spin-off-hsn-ticketmaster-interval-and-lendingtree-as-four-publicly-traded-companies
  77. https://www.nytimes.com/2003/05/06/business/technology-usa-interactive-is-acquiring-lendingtree-in-stock-deal.html
  78. https://www.housingwire.com/articles/iac-spin-lending-tree/
  79. https://investors.lendingtree.com/static-files/505c95e3-4c95-4f1d-ae0c-c0889a63aed2
  80. https://www.bizjournals.com/charlotte/stories/2008/08/11/daily7.html
  81. https://www.reuters.com/article/business/iac-to-spin-off-four-units-shares-up-idUSWNAS0362/
  82. https://www.inman.com/2007/11/05/iac-lendingtree-spin-independent-company/
  83. https://dcfmodeling.com/blogs/history/mtch-history-mission-ownership
  84. https://www.latimes.com/business/la-fi-diller-match-com-20131219-story.html
  85. https://ir.mtch.com/investor-relations/news-events/news-events/news-details/2019/IAC-and-Match-Group-Announce-Agreement-to-Separate-Match-Group-from-IAC/default.aspx
  86. https://ir.mtch.com/investor-relations/news-events/news-events/news-details/2020/IAC-and-Match-Group-Complete-Full-Separation/default.aspx
  87. https://www.prnewswire.com/news-releases/iac-and-match-group-complete-full-separation-301086627.html
  88. https://www.sec.gov/Archives/edgar/data/1837686/000110465921062460/tm2115385d2_425.htm
  89. https://investors.vimeo.com/news-releases/news-release-details/iacs-vimeo-enters-live-video-market-agreement-acquire-livestream
  90. https://deadline.com/2019/04/vimeo-acquires-magisto-1202595962/
  91. https://www.prnewswire.com/news-releases/iac-stockholders-approve-vimeo-spin-off-301291880.html
  92. https://www.reuters.com/technology/online-video-platform-vimeo-plunges-nasdaq-debut-following-spin-off-2021-05-25/
  93. https://ir.angi.com/news-releases/news-release-details/iacs-homeadvisor-combine-angies-list
  94. https://ir.angi.com/news-releases/news-release-details/iacs-angi-homeservices-inc-makes-stock-market-debut
  95. https://www.iac.com/press-releases/angies-list-is-now-angi-a-new-way-to-help-people-love-where-they-live?skip=-1
  96. https://ir.iac.com/static-files/95f070db-ded8-48c6-92f0-636d73210cff
  97. https://www.forbes.com/sites/joecornell/2025/03/13/iac-to-spin-off-angi-on-april-fools-day/
  98. https://www.iac.com/press-releases/iac-to-invest-250-million-in-turo
  99. https://seekingalpha.com/article/4787090-why-iac-is-a-better-bet-than-mgm-resorts
  100. https://news.crunchbase.com/public/shrinking-ipo-pipeline-unicorn-turo-hits-pause/
  101. https://www.hollywoodreporter.com/business/business-news/barry-diller-iac-ceo-exits-1236107974/
  102. https://www.iac.com/leadership
  103. https://deadline.com/2025/01/barry-diller-iac-returning-as-ceo-spinoff-angi-1236255947/
  104. https://www.barrons.com/articles/barry-diller-will-once-again-lead-iac-80e2a4d7
  105. https://paragonintel.com/barry-diller-ceo-analysis-iac/
  106. https://hightechinvesting.substack.com/p/iac-holding-is-the-next-billion-dollar
  107. https://www.hbr.org/podcast/2025/05/the-secrets-behind-barry-dillers-business-success
  108. https://ir.iac.com/static-files/19d2e868-897e-4d30-aad4-c5c09ec32405
  109. https://ir.iac.com/news-releases/news-release-details/iac-nominates-tor-r-braham-board-directors
  110. https://www.marketscreener.com/quote/stock/IAC-INC-109581170/company-governance/
  111. https://corpgov.law.harvard.edu/2017/07/18/calpers-v-iac-clear-win-for-investors-protecting-shareholder-voting-rights/
  112. https://www.calpers.ca.gov/sites/default/files/spf/docs/12-12-16-copy-of-complaint-iac-v-calpers.pdf
  113. https://finance.yahoo.com/news/why-this-activist-investor-wants-big-changes-at-billionaire-media-mogul-barry-dillers-iac-124431261.html
  114. https://www.investing.com/news/transcripts/earnings-call-transcript-iac-q1-2025-reports-revenue-miss-stock-dips-93CH-4025219
  115. https://www.prnewswire.com/news-releases/iac-nominates-tor-r-braham-to-board-of-directors-302440444.html
  116. https://www.bloomberg.com/news/articles/2025-04-29/barry-diller-s-iac-agrees-to-new-board-member-in-activist-push
  117. https://www.semafor.com/article/05/06/2025/activists-come-for-the-media-moguls
  118. https://www.axios.com/2025/04/29/iac-tor-braham-activist-investor
  119. https://ir.iac.com/static-files/e1b8f69e-e5d8-4927-986a-0a1408824111
  120. https://finance.yahoo.com/quote/IAC/key-statistics/
  121. https://stockanalysis.com/stocks/iac/statistics/
  122. https://www.marketwatch.com/investing/stock/iac/financials
  123. https://ir.iac.com/fundamentals/income-statement
  124. https://seekingalpha.com/symbol/IAC
  125. https://www.macrotrends.net/stocks/charts/IAC/iac/revenue
  126. https://www.investing.com/news/transcripts/earnings-call-transcript-iacs-q2-2025-eps-surprises-stock-falls-13-93CH-4170868
  127. https://ir.iac.com/quarterly-results
  128. https://www.tipranks.com/news/company-announcements/iac-expands-share-repurchase-program-by-10-million
  129. https://www.marketscreener.com/quote/stock/IAC-INC-109581170/news/IAC-Inc-announces-an-Equity-Buyback-for-25-000-000-shares-47734300/
  130. https://www.webull.com/news/13355521242596352
  131. https://www.sec.gov/Archives/edgar/data/891103/000089110319000006/iac-20181231x10k.htm
  132. https://www.tipranks.com/news/company-announcements/iac-announces-new-share-repurchase-authorization
  133. https://ir.iac.com/news-releases/news-release-details/iac-inc-announces-pricing-offering-senior-secured-notes-dotdash
  134. https://www.investing.com/news/sec-filings/iac-subsidiary-secures-favorable-loan-terms-93CH-3743177
  135. https://finance.yahoo.com/news/why-iac-iac-slid-q4-141930348.html
  136. https://www.bloomberg.com/news/articles/2008-07-18/iac-in-pact-to-raise-2-bil-in-bonds-loans-tied-to-spinoffs
  137. https://corpgov.law.harvard.edu/2008/04/04/diller-vs-malone/
  138. https://www.analysisgroup.com/Insights/cases/interactivecorp-/
  139. https://www.nytimes.com/2008/03/29/technology/29diller.html
  140. https://www.reuters.com/article/business/liberty-aims-to-remove-diller-from-iac-board-idUSN28526029/
  141. https://www.courthousenews.com/iac-investors-sue-barry-diller-over-nepotistic-stock-plan/
  142. https://contracts.justia.com/companies/iac-7604/contract/384308/
  143. https://www.mayerbrown.com/en/insights/publications/2024/05/in-re-match-group-inc-delaware-supreme-court-clarifies-standard-of-review-for-controlling-stockholder-transactions
  144. https://law.justia.com/cases/delaware/supreme-court/2024/368-2022.html
  145. https://corpgov.law.harvard.edu/2022/10/20/chancery-court-finds-conflicted-controller-spinoff-met-mfw-prerequisites/
  146. https://news.bloomberglaw.com/esg/match-com-spinoff-case-revived-in-major-ruling-on-insider-deals
  147. https://www.delawarelitigation.com/2024/10/articles/chancery-court-updates/chancery-rules-conflicted-dual-fiduciaries-must-face-derivative-suit-over-match-spinoff/
  148. https://www.bloomberg.com/news/articles/2025-06-11/diller-s-iac-in-30-million-settlement-over-match-com-spinoff
  149. https://news.bloomberglaw.com/litigation/this-week-in-chancery-court-dillers-iac-deal-in-match-com-case
  150. https://www.reuters.com/article/iac-liberty-idUKN0143753320080201/
  151. https://www.cbsnews.com/news/breaking-diller-malone-dispute-resolved-iac-spinoffs-can-go-forward/
  152. https://ir.iac.com/node/30651/pdf
  153. https://www.hollywoodreporter.com/business/business-news/iac-new-board-member-activist-barry-diller-1236203048/
  154. https://finance.yahoo.com/news/look-iacs-iac-valuation-following-070645774.html
  155. https://fs.blog/knowledge-project-podcast/barry-diller/
  156. https://www.fool.com/investing/2022/01/24/this-little-known-conglomerate-can-make-you-a-fort/
  157. https://www.forbes.com/sites/jimosman/2022/01/04/iacinteractivecorp-is-a-12-billion-company-that-has-created-127-billion-worth-of-value-shareholders-can-expect-a-lot-more-heres-why/
  158. https://ir.iac.com/investor-faqs
  159. https://seekingalpha.com/article/4799754-iac-its-20-percent-mgm-stake-makes-the-stock-a-buy
  160. https://www.financecharts.com/stocks/IAC/performance
  161. https://www.cfo.com/news/media-power-iac-paints-picture-of-proactive-ir/659005/
  162. https://www.tradingcalendar.com/post/iac-strategic-spin-offs-corporate-evolution
  163. https://www.ainvest.com/news/iac-strategic-reinvention-overcome-revenue-reclaim-growth-2508/
  164. https://finance.yahoo.com/quote/IAC/earnings/IAC-Q2-2025-earnings_call-342521.html/
  165. https://finance.yahoo.com/news/weakening-consumer-confidence-challenge-iacs-125536412.html/
  166. https://www.sahmcapital.com/news/content/iac-iac-assessing-valuation-following-trade-tension-fears-and-digital-ad-challenges-2025-10-14
  167. https://stockrow.com/IAC/business-profile
  168. https://www.bloomberg.com/news/features/2024-10-09/lina-khan-on-a-second-ftc-term-ai-price-gouging-data-privacy
  169. https://seekingalpha.com/news/4407401-iac-projects-revenue-growth-for-angi-by-2026-following-product-overhaul
  170. https://www.prnewswire.com/news-releases/iac-completes-spin-off-of-angi-now-an-independent-company-302416907.html/
  171. https://ir.iac.com/code-business-conduct-and-ethics
  172. https://www.cnbc.com/2021/07/09/iac-ceo-joey-levin-apple-worse-than-google-will-be-next-antitrust-target.html
Add your contribution
Related Hubs
User Avatar
No comments yet.