A Delaware chancery court judge has ruled in favor of Barry Diller and his rights to vote Liberty Media’s (NSDQ: LINTA) proxy on IAC’s (NSDQ: IACI) proposed spinoff — a defeat for John Malone. WSJ was first with the news and other reports are out now.
This means that Malone and Liberty Media won’t be able to prevent Diller from following through with plans to spin off four public companies from IAC, or, it seems, to create a single-tier voting class. (In the ruling, Judge Stephen Lamb retained jurisdiction over Liberty’s claims that it would be harmed in a single-tier structure for “later resolution on a more complete record, if the need arises.”) It also keeps Liberty from removing Diller and others from the IAC board.
Despite the view of some analysts that a Liberty win would be a good thing for IAC shareholders, the stock is up sharply after hours. The latest bid is around $22, up over 7 percent from the close of $20.49.
Update: We’ve posted the full ruling below as promised….more in extended entry…
Statement from Diller (via IAC PR):