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.
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