IAC - InterActive Corp
IAC is Barry Diller's Internet Frankenstein; but soon this small media conglomerate will spin-off a handful of operations. Since the announcement of this event, the stock has fallen approximately 30%. Today the stock trades for $22. I'm curious what a holder of IAC should expect in the future.
Currently, IAC has $1.403 billion in cash or $5 per share. Also, IAC has $500 million in receivables or $1 per share conservatively. That means the remaining businesses are worth $16.00 total per share.
Recent sales breakdown among the five segments as follows:
HSN 48%
'New' IAC 25%
Ticket Master 19%
Lending Tree 3%
Interval 5%
*ValueLine
If the stock prices fall along these sales breakdowns you have the following:
HSN: $7.68
'New' IAC: $4.00
Ticket Master: $3.04
Lending Tree: $0.48
Interval: $0.80
The New IAC will keep most of the cash and the "Barry Diller Premium". Some of these companies should also have a buyout premium. Interval is preforming well and growing. Lending Tree will need time to recover. Ticket Master has met new competition but still preforms well. HSN could easily become an acquisition target for any number of media companies. New IAC will hold valuable Internet properties such as: Ask.com, Match.com, Evite.com, Gifts.com, College Humor, BustedTees, Chemistry.com and many more.
Will the spin-offs create a lot of value? Maybe. It will be interesting to watch and might be worth some discretionary funds.
Tuesday, June 3, 2008
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