IAC Spinoffs A Go
IAC is all set to move ahead with spinoffs of the company’s Ticketmaster, HSN, Interval time-share business and LendingTree mortgage referral units after the resolution of a legal hangup with majority shareholder Liberty Media.
While a Delaware Chancery Court Judge ruled that IAC had the right to proceed with the spinoffs in March, Liberty Media continued to object to the plan, which proposed a new single-tier voting structure that would apparently dilute the company’s voting power.
But it appears IAC and Liberty were finally able to put the past behind them.
"I am pleased that we were able to amicably resolve our dispute with IAC," Liberty Chairman John Malone said in a statement. "Liberty supports the proposed restructuring of IAC and looks forward to the ongoing success of each of the new entities and IAC."
By dropping its appeal of the court decision and its opposition to the proposed voting structure, Liberty will be represented on the board of each of the spun-off companies, the statement said. The agreement also limits Liberty’s ability to increase its ownership stakes and to take a variety of other actions with respect to the independent companies.
IAC made initial filings with the SEC May 13th. IAC CEO Barry Diller previously said he expected to complete the spinoffs by August.