IAC (company)

IAC (company) IAC is an American holding company that owns and operates a diverse portfolio of digital media and internet businesses across more than 100 countries. Originally formed as Silver King Broadcasting Company in 1986, it was renamed IAC/InterActiveCorp in 2003 and is now known simply as IAC. The company is known for its strategy of incubating, acquiring, and spinning off major internet brands, with a significant operational focus on Angi Inc., Dotdash Meredith, and Care.com.

History

The company's origins trace back to 1986 when Barry Diller formed Silver King Broadcasting, which acquired Home Shopping Network in a deal involving John C. Malone's Liberty Media. In 1995, Diller, in partnership with Liberty Media, acquired a controlling stake in Silver King and subsequently purchased the Savoy Pictures television assets, forming HSN, Inc. The company expanded aggressively into the nascent internet sector, acquiring a stake in Ticketmaster in 1997 and merging with USA Networks in 1998. After a series of complex transactions, including the acquisition of Expedia and the spin-off of Vivendi Universal Entertainment, the company was renamed IAC/InterActiveCorp in 2003. Major subsequent milestones include the 2005 acquisition of Ask Jeeves (later Ask.com) and the 2008 five-way spin-off that created separate public companies for Expedia, Ticketmaster, HSN, and Interval Leisure Group. In 2020, IAC completed its acquisition of a controlling stake in MGM Holdings, the parent of Metro-Goldwyn-Mayer, and later spun off its Vimeo subsidiary in 2021.

Corporate structure and subsidiaries

IAC operates through distinct segments, primarily consisting of its publicly traded majority-owned subsidiaries and a collection of privately held emerging brands. Its largest and most significant holding is Angi Inc., a digital marketplace for home services formed from the merger of Angie's List and HomeAdvisor. Another major subsidiary is Dotdash Meredith, one of the largest digital and print publishers in America, created by merging Dotdash with the assets of Meredith Corporation, which included iconic brands like People, Better Homes and Gardens, and Allrecipes. IAC also holds a controlling stake in Care.com, the world's largest online marketplace for family care. Other notable investments and operations include The Daily Beast, Blueprint, and a portfolio of early-stage technology companies.

Leadership and governance

The company has been led since its inception by Chairman and Senior Executive Barry Diller, a prominent media executive formerly of Paramount Pictures and Twentieth Century Fox. Joey Levin has served as Chief Executive Officer since 2015 and also chairs the boards of Angi Inc. and Dotdash Meredith. The board of directors has included notable figures such as Chelsea Clinton, Edgar Bronfman Jr., and Michael Eisner. Corporate governance is structured around a traditional model with a board of directors and several committees, including an audit committee and a compensation committee, overseeing its publicly traded and private entities.

Financial performance

IAC's financial results are heavily influenced by the performance of its publicly traded subsidiaries, particularly Angi Inc. and Dotdash Meredith. The company reports consolidated revenue that aggregates the results of its majority-owned operations. Its business model involves investing capital into building and acquiring digital businesses, with a history of realizing value through strategic spin-offs, such as those of Match Group and Expedia Group, which have delivered significant returns to shareholders. Financial performance can be volatile due to the company's investment-oriented strategy and the competitive dynamics in the digital advertising, publishing, and services marketplaces it operates within.

Acquisitions and investments

IAC has a long and active history of mergers and acquisitions central to its growth strategy. Key acquisitions include Ask Jeeves (2005), Lexico (which included Dictionary.com), CollegeHumor, and Vimeo. Its most transformative deal in recent years was the 2021 acquisition of Meredith Corporation to merge with its Dotdash unit. The company also made a significant investment in MGM Holdings before its eventual sale to Amazon. IAC frequently makes smaller, strategic investments in early-stage technology companies across sectors like healthcare, media, and consumer technology through its IAC Ventures arm.

Criticism and controversies

The company and its subsidiaries have faced various criticisms. Angi Inc. has been subject to complaints and lawsuits regarding its service provider screening, billing practices, and the quality of leads provided to contractors. Dotdash Meredith has faced scrutiny over its search engine optimization practices and the integration of advertising content within editorial material. IAC's corporate governance, particularly the dual-class share structure that consolidates voting control with Barry Diller, has been a point of contention for some shareholder advocacy groups. Furthermore, the editorial direction of its property The Daily Beast has occasionally sparked political controversy.