IAC breaks up internet conglomerate to focus on high growth businesses

 

 

IAC will spin off four of its biggest divisions, including the HSN cable shopping network, and retain 30 of its fastest-growing businesses to better capitalize on the growth of Web services.

IAC's main businesses, of which HSN and LendingTree were the largest, have diverged in terms of growth and profitability HSN has conducted a lengthy overhaul of merchandise and television programming while the mortgage business has been hurt by a deteriorating U.S. housing market.

IAC kept its media and subscription-related businesses under its roof because their earnings allow the company to invest in emerging Internet businesses. They include the Ask.com Web search unit, Evite, Match.com dating service, online video site Vimeo and virtual world Zwinky.

Separating the businesses would make them easier for investors to understand and put them in a better position to hire talent and buy other companies.

The media and advertising business reported a 40 percent rise in revenue and $15.4 million in operating income during the third quarter, reversing a loss from a year ago.

Here is how the break down will work:

1. IAC will include: Ask.com, Bloglines, Citysearch, CursorMania, IAC Advertising Solutions, Evite, Excite, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti, Zwinky, Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications, ReserveAmerica, Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Gifts.com, Green.com, InstantAction, Primal Ventures, Pronto, Very Short List, Vimeo and 23/6, Active.com, Brightcove, FiLife, Medem, MerchantCircle, OpenTable, Points.com and SHOP Channel.

2. HSN: The Home Shopping Network, which includes HSN TV, hsn.com, and the Cornerstone Brands, Inc. portfolio of catalogs, web sites and retail locations.

3. Ticketmaster will include: Admission.com, Biletix, Billetnet, BillettService, Cottonblend, Echomusic, Kartenhaus.de, Lippupalvelu, LiveDaily, TicketService, Tick Tack Ticket, TicketWeb and Ticnet.se, as well as Ticketmaster’s current investments in Frontline and iLike.

4. Interval International will include: CondoDirect, Resort Quest Hawaii and VacationSource.com;

5. LendingTree will include: RealEstate.com, Domania, GetSmart, Home Loan Center and iNest.

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