What Companies Does IAC Own?

IAC Inc. is an American holding company that owns brands across 100 countries, mostly in media and Internet. Established in 1986 as Silver King Broadcasting Company, IAC has evolved into a prominent player in the industry. With a focus on acquiring and spinning off companies, IAC has built a diverse portfolio and delivered value to its shareholders. In this article, we explore the companies currently owned by IAC and its successful history of spinoff transactions.

Key Takeaways:

• IAC Inc. is an American holding company with a diverse portfolio of brands in media and Internet.
• The company follows an “anti-conglomerate” strategy, acquiring and spinning off businesses to create value.
• Notable companies currently owned by IAC include ANGI Homeservices, MGM Resorts, Care.com, and Turo.
• IAC has a successful history of spinoff transactions, including PayPal, Match Group, Expedia, and LendingTree.
• Spinoffs allow companies to focus on core businesses, unlock hidden value, and provide flexibility in operations.

History of IAC and Spinoff Transactions

IAC Inc., formerly known as Silver King Broadcasting Company, has a rich history that dates back to 1986. Initially focused on increasing viewership of the Home Shopping Network, the company underwent various name changes before becoming IAC Inc. as we know it today.

One of the key strategies employed by IAC is its approach to spinoff transactions. By acquiring companies and subsequently spinning them off to shareholders, IAC has been able to unlock hidden value and provide flexibility to its operations. This strategy has resulted in significant value creation for the company and its shareholders.

IAC’s Successful Spinoffs

IAC’s spinoffs have been particularly successful, with notable examples including PayPal, Match Group, Expedia, and LendingTree. These spinoffs have allowed the respective businesses to focus on their core operations and have generated substantial returns for investors. According to a study by The Edge and Deloitte, IAC has created nearly $115 billion worth of value through its spinoff transactions.

In addition to spinoffs, IAC has also generated value through asset sales. The recent spinoff of Vimeo in 2021 is a testament to IAC’s commitment to creating value through spinoffs. The company continues to nurture and grow businesses like Care.com, ANGI Homeservices, and MGM Resorts, hinting at the potential for future spinoffs and value creation.

Notable Spinoffs	Value Created	Year
PayPal	Extraordinary returns	2002
Match Group	Significant value creation	2009
Expedia	Substantial returns	2005
LendingTree	Value creation opportunity	2008

Notable Spinoff and Asset Sales by IAC

IAC Inc. has a long history of successful spinoffs and asset sales, which have generated significant value for the company and its shareholders. Some of the notable spinoffs by IAC include PayPal, which has produced extraordinary returns since its separation from eBay. The company has also undergone numerous stock splits, reverse splits, and spinoffs over the years, further creating value for shareholders.

In addition to spinoffs, IAC has also generated value through known asset sales, totaling over $13 billion. The recent spinoff of Vimeo in 2021 is another example of value creation through spinoffs. The company continues to nurture and grow businesses like Care.com, ANGI Homeservices, and MGM Resorts, with the potential for future spinoffs. The acquisition of Meredith Corp.’s publishing assets adds to the potential for value creation as well.

Table: Notable Spinoffs and Asset Sales by IAC

Year	Spinoff/Asset Sale	Value Created (in billions)
2002	PayPal	$20+
2015	Match Group	$9+
2017	Expedia	$10+
2019	LendingTree	$5+
2021	Vimeo	$2+
Various years	Other asset sales	$13+

Through its successful spinoffs and asset sales, IAC has demonstrated its ability to create value for both the company and its shareholders. With a track record of nurturing, growing, and scaling businesses before spinning them off, IAC continues to explore opportunities for future value creation.

Financial Performance and Future Outlook for IAC

IAC has reported strong financial performance in Q3FY21, with revenues surpassing expectations. The company’s business segments, including Dotdash, Search, and Emerging businesses, have played a vital role in driving its top-line growth. Notably, ANGI Homeservices and the Search segment delivered exceptional results, outperforming projections.

The recent merger of Meredith Corp.’s digital and magazine business with Dotdash is anticipated to contribute significantly to IAC’s future growth. The management has provided guidance for robust Adjusted EBITDA and envisions continued opportunities for businesses such as Dotdash-Meredith, Care.com, Turo, and MGM.

As an organization that controls various media and technology companies, IAC is consistently nurturing these businesses for potential future spinoffs. The potential for value creation remains high as these businesses continue to grow and evolve. Currently, IAC is trading with a market capitalization of $11.7 billion, but it is believed that the sum of its parts holds significantly higher value.