Interactive Corp's Investment Strategies: Exploring Their Approach

InterActiveCorp (IAC) is a media and internet company that provides services to consumer audiences worldwide. It operates through several business segments, including Match Group, ANGI Homeservices, Vimeo, Dotdash, Applications, and Emerging & Others. IAC has a history of spinning out companies once they are successful and able to operate independently. The company is headquartered in New York City and is home to dozens of digital products and brands, including some of the world's most recognised brands such as HomeAdvisor, Vimeo, Dictionary.com, and Match Group's online dating portfolio. IAC offers capital, operating experience, investment expertise, and a long-term investment horizon to promising internet platform companies.

IAC/InterActiveCorp's market value

IAC/InterActiveCorp is an internet media company with segments that include Angi (33% of total revenue), Dotdash Meredith (39%), Search (14%), and Emerging and Other (14%). The company is headquartered in New York City and is home to dozens of digital products and brands used by people worldwide.

IAC has a unique business model, often referred to as the "anti-conglomerate" method, where it acts as a vehicle to buy and build up companies before spinning them off to shareholders as independent entities. This strategy has created significant value for IAC and its shareholders.

As of 2022, IAC was a $12 billion market cap company that had created $128 billion worth of value. The company has undergone numerous stock splits, reverse splits, and spinoffs, with the seventh valuable spinoff, Vimeo, occurring in 2021. This spinoff alone created value exceeding $110 billion for shareholders since 2000.

IAC's divisions are well-positioned to reach revenues of around $1 billion each, and the company has a strong balance sheet with minimal debt and high cash reserves. It also holds valuable minority stakes in companies like Turo and MGM Resorts International.

Analysts have set a target price of $203 for IAC's stock, representing a potential upside of over 50% from its current price.

IAC's history of spinning out companies

IAC, formerly known as InterActiveCorp, is an American holding company that owns brands across 100 countries, mostly in media and the internet. It 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. Over the years, IAC has built and spun out several companies, including category-defining companies such as Vimeo, Angi Inc., Match Group, Expedia, TripAdvisor, HSN, LendingTree, Interval Leisure Group, and Live Nation (formerly Ticketmaster).

IAC has a history of spinning out companies once they are successful and able to stand on their own. The company acts as an incubator, backing promising internet platform companies early on and providing them with capital, operating experience, investment expertise, and a long-term investment horizon to build great companies. Once these companies are successful, IAC spins them out, giving shareholders a stake in the new company. This allows the new company to gain independence from the parent company, enabling it to allocate capital, attract staff, and reward them with their own listed shares.

IAC's first spinoff occurred in 1992 when Silver King was spun off to HSN shareholders as a separately traded public company. Since then, IAC has spun off several other companies, including Expedia in 2003, LendingTree, Ticketmaster, and Interval International in 2005, and Match Group in 2020. In 2021, IAC completed the spin-off of Vimeo, the 11th company to be spun off from IAC. Vimeo trades on Nasdaq under the symbol "VMEO".

IAC's spinoffs have created significant value for shareholders. As of 2022, IAC has created nearly $115 billion worth of value in spinoff transactions, with a market cap of $11.7 billion. The company's chairman and senior executive, Barry Diller, has been instrumental in IAC's success, always tuned in to up-and-coming trends and fads, and knowing when to reform and spin off businesses.

IAC's role as an internet platform builder

IAC/InterActiveCorp is a NASDAQ-listed media company and internet platform builder, operating more than 60 brands, including Ask.com, LendingTree, Match.com, and Ticketmaster. Headquartered in New York City, IAC is home to dozens of digital products and brands used by people all over the world.

IAC is an internet conglomerate, similar to a listed internet incubator like Y Combinator. The company backs promising internet platform companies that match supply and demand for services, whether it's dating, travel, or home services. IAC offers capital, operating experience, investment expertise, and discipline, as well as a long-term investment horizon to build great companies.

IAC has a history of spinning out companies once they are successful and able to stand on their own. The company exists as a vehicle to buy and build up companies before spinning them off to shareholders. This strategy is called the "anti-conglomerate" method by IAC Chairman and Senior Executive Barry Diller, and it has been highly successful. IAC has created nearly $115 billion worth of value in spinoff transactions, with companies like Match Group, Expedia, and Lending Tree producing great returns.

IAC's notable acquisitions

InterActiveCorp (IAC) is an internet conglomerate that has made several notable acquisitions over the years. IAC has a history of spinning out companies once they are successful and able to stand on their own. Here are some of IAC's notable acquisitions and investments:

• Match Group: IAC has an 81% holding in Match Group, which includes popular online dating platforms such as Match.com, Tinder, and OkCupid. Match Group dominates the online dating world, operating four of the top five grossing dating apps in North America.
• ANGI Homeservices: Formerly known as Angie's List, ANGI Homeservices is a marketplace model that connects homeowners with service professionals for home repair and maintenance. IAC has a significant stake in the company, and it is one of their leading businesses.
• Vimeo: IAC acquired Vimeo, a video hosting, sharing, and services platform used by creative professionals and businesses. Vimeo is known for serving creators and businesses rather than competing for viewers.
• Dotdash Meredith: IAC acquired Dotdash, a digital publisher with a portfolio of brands providing content across various lifestyle topics. Dotdash merged with Meredith Corporation's National Media Group, adding well-known publications such as Better Homes & Gardens and People Magazine to its portfolio.
• Care.com: IAC acquired Care.com, an online platform for finding and managing family care services, including child, elder, pet, and home care.
• Ask.com: IAC acquired Ask.com, a provider of search tools and content platforms, including the Ask.com website, helping users find information.
• About.com: IAC acquired About.com, a digital publisher with a wide range of content covering various topics.
• Expedia: IAC had a significant stake in Expedia, a well-known travel and hospitality company. In 2004, Expedia split from IAC as a separate publicly traded company.
• Ticketmaster: IAC had a stake in Ticketmaster, a ticketing company, which later merged with Live Nation.
• LendingTree: IAC acquired LendingTree, an online lending and financial services company.

These acquisitions and investments have contributed to IAC's success and growth over the years, with the company creating significant value for its shareholders.

IAC's business segments

IAC/InterActiveCorp is a \$12 billion company that has created over \$128 billion worth of value for its shareholders. It is a NASDAQ-listed media company that operates as an internet conglomerate, with a portfolio of over 60 brands.

IAC is headquartered in New York City and categorises its businesses into distinct segments for financial reporting purposes. These business segments are:

Angi Inc.

Angi Inc. (NASDAQ: ANGI) is a digital marketplace for home services, connecting homeowners with service professionals. It includes HomeAdvisor and Angie's List.

Dotdash Meredith

Dotdash Meredith is a portfolio of digital brands that provide expert information and inspiration in select content categories. It includes brands such as Better Homes & Gardens, Entertainment Weekly, and Martha Stewart Living.

Search

The Search segment includes Ask Media Group, which owns Dictionary.com, Thesaurus.com, and Reference.com.

Emerging and Other

This segment includes a variety of brands such as Blue Crew, The Daily Beast, College Humor Media, and IAC Films.

IAC has a history of spinning off companies once they become successful. The company has undergone numerous stock splits, reverse splits, and spinoffs, creating significant value for its shareholders.

Frequently asked questions