Each of these spun-off businesses is in fact a distinct business sector, and each will benefit from standing on its own, with its own capital structure, its own currency, said Barry Diller, chairman and chief executive at IAC.
Following the spin off, IAC will become an integrated internet conglomerate with over 30 brands, including Ask.com, IAC Advertising Solutions, Evite, Excite, InsiderPages, Webfetti, Zwinky.
HSN will include the retailing segment brands such as HSN TV and hsn.com, and Ticketmaster will include its operations such as TicketService, Tick Tack Ticket, TicketWeb and Ticnet.se. While LendingTree will be focused on mortgage referral, Interval International will include the CondoDirect, Resort Quest Hawaii and VacationSource.com brands.
On the completion of the transaction, IAC will retain substantially all of the company’s cash and the new companies will be appropriately capitalized. According to IAC, its shareholders will own 100% of the equity in all five companies. The transaction is expected to be tax-free for both IAC and its shareholders. The outstanding IAC stock options and restricted stock units held by employees will be adjusted into either options or restricted stock units of the company.
Mr Diller will continue as chairman and chief executive officer of IAC. Mindy Grossman, Sean Moriarty, CD Davies, and Craig Nash will continue as the chief executive officers of HSN, Ticketmaster, LendingTree, and Interval, respectively, and Bret Violette will continue as the president of RealEstate.com.
Another media company, Viacom also separated its business into two publicly traded companies in 2006. The two entities are known as CBS Corporation and new Viacom. CBS Corporation includes the CBS Television Network, UPN, CBS Radio, Viacom Outdoor, Viacom Television Stations Group, Paramount Television, King World, Showtime, Paramount Parks and CSTV. The new Viacom includes the MTV network, BET, Paramount Pictures, Paramount Home Entertainment and Famous Music.
Source: ComputerWire daily updates
