IAC’s $369.9M Loss May Cause Firm To Breakup
The IAC/Interactive Corp. posted a Q4 loss and stated that write-downs and decreased consumer spending at the entertainment unit could justify breaking the company up into five separate firms.
The net loss posted by the company came to about $369.9 million or $1.31 a share. This is compared to a net income of $15.3 million or five cents a share according to WSJ.com.
$475.7 million in write-downs at LendingTree and $57.2 million at the entertainment business were included in these results. The previous year saw write-downs that equaled $214 million in the entertainment divisions of the firm.
Barry Diller, chairman and CEO of the company said to wsj, “There is good news and bad news this quarter – the mix of which is another reason why our previously announced plans to reorganize IAC into five independent public companies makes more and more sense.”
The online conglomerate’s business includes properties such as the HSN home shopping network, Ask.com, Ticketmaster, Citysearch and LendingTree.
Revenue at LendingTree dipped 55% due to the recession. Operating losses totaled $508.1 million. The media and advertising division which includes Ask.com, Evite and Citysearch gained 42% in revenue, the report continued.
The entertainment arm had a $57.2 million impairment charge due to languishing fund-raising channels for Sally Foster products and coupons, but saw a 27% revenue increase for Ticketmaster. Various fluctuations within this arm are due to many components, including but not exclusive to the economic recession.
Reader Comments.
No comments yet
Leave a Comment
Article Sponsor
More News
Spotlight
Mobile to the RescueADOTAS EXCLUSIVE — The industry is still wary about mobile advertising — does it work, how significant is the ROI [...] more...
Latest News
- Reality Bites Google December 3rd 2008
- 2009 Revenue For Twitter December 3rd 2008
- Funding Round-Up: Evernote, Angie’s List, UTest December 3rd 2008
- Ads Not Working? Change The Font December 3rd 2008
- MySpace Breaks Into Mobile Ad Market December 3rd 2008
- Cyber Monday, Profitless Boon? December 3rd 2008
- Yahoo, Rumors and Stupidity December 3rd 2008
- FCC To Mull Free Internet Plan December 2nd 2008
Features
- Down Year Will Bring Opportunities December 3rd 2008
- Mobile to the Rescue December 2nd 2008
- Ideas On Effective Management December 2nd 2008
- Quality Video: DIY (Cheap) or Else December 1st 2008
- Will Widget Channel Be Tuned In? November 26th 2008
Reader Favorites
Classifieds
Most Commented
- Targeting Is the Ad Network "Killer App" (7)
- Vengence is Mine Saith Ballmer (6)
- When Boomers, Gen Y Collide (5)
- Study: Blogs Beat Social Networks on Purchase Influence (5)
- Federal Bailout Proposed for Online Ad Industry (4)
- Ad Networks That Buck the Downward Trend (4)
- Self-Serve Ad Exchange: This Century's Strowger Switch? (3)
- Bust-Outs and Layoffs: Apple, NBCU, Nokia, Spot Runner, WildTangent (3)
