IAC (NSDQ: IACI) plans to split into five publicly traded companies. Here’s the breakdown of what those companies will include:
IAC: Will be headed by Barry Diller. The businesses currently comprising its Media & Advertising sector: Ask.com, Bloglines, Citysearch, CursorMania, IAC Advertising Solutions, Evite, Excite, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti and Zwinky.
— Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica;
— Emerging Businesses: Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Gifts.com, Green.com, InstantAction, Primal Ventures, Pronto, Very Short List, Vimeo and 23/6;
— IAC’s current investments in Active.com, Brightcove, FiLife, Medem, MerchantCircle, OpenTable, Points.com and SHOP Channel.
HSN: Will be headed by Mindy Grossman. Basically IAC’s Retailing segment, including HSN TV, hsn.com, and the Cornerstone Brands, Inc. portfolio of catalogs, web sites and retail locations, including Alsto’s, Ballard Designs, Frontgate, Garnet Hill, GrandinRoad, Improvements, Isabella Bird, Smith+Noble, The Territory Ahead and TravelSmith.
Ticketmaster: Will be headed by Sean Moriarty. Both domestic and international operations including 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.
Interval International: Will be headed by Craig Nash. CondoDirect, Resort Quest Hawaii and VacationSource.com.
LendingTree: Will be headed by CD Davies. Also includes RealEstate.com, Domania, GetSmart, Home Loan Center and iNest.
Updated: One important detail that emerged as the day went on: a lot more details have to be worked out before the spinoffs are finalized in Q2 or Q3 2008. Diller : “That’s stuff we’ll be doing over next two-three months.”
Voting power & Liberty Media: Among the details that have to be worked out: where Liberty Media (NSDQ: LINTA) fits in and how Diller’s power to vote Liberty’s majority shares changes with the split? The NYT suggests a swap might be underway — Liberty’s shares of IAC for HSN. Pre-spinoff it would be tax-free, just the way Liberty Chairman John Malone likes it.
WSJ: “Mr. Diller’s voting rights don’t automatically extend to companies spun out of IAC, according to executives of both companies. As a result, Liberty will be given the chance to take control of any of them, although it isn’t clear Mr. Malone wants them all.” Diller is likely to retain power over one or two of the companies. (That lack of power over all five goes some way to explaining why Diller said at the press conference that he would remain involved with only one or two.) Malone: “It unsticks some things. … From our point of view, each one of these businesses will be more valuable.”