E – Business Case Study
Disha Dorkadi – 107
RashiAgarwal – 118
Sulabh Gugnani – 204
Balagopal P – 301
Ishan Parekh - 3151
IAC/InterActiveCorp. (IAC) is an Internet company with
more than 50 brands serving consumer audiences across
more than 30 countries.
Currently operates in four business divisions:
Search, Personals, ServiceMagic and Media & other.
Its strategy focuses on aggressive growth, which has
lead to the various mergers and acquisitions over the
It is an company with interactive media & advertising as
its core competency.
Served as a vice president of PrimeTimeTelevision
Chairman and chief Executive of Paramount Pictures
Corporation for 10 years
In 1983, became the president of Paramount’s EAC group
From 1984 to 1992, was the chairman and CEO of Fox, inc.
QVC - HSN from 1992-1994
1994 - chairman and CEO of Silver king Communications
(much later renamed as IAC)
HSN, Savoy Pictures
50% ofTicket Master
USA Networks and Sci Fi
(USA Networks, inc)
Merged in 1996
Acquired in 1997
Acquired in 1998
Purchased in 1999
Purchased in 1998
Acquired another stake
from public in May 1998
and the remaining in
Most of it later sold in 2001.
Ticket Master merges
the exclusive dating site for
yahoo since may 2010. 4
Precision response corporation
Renamed to USA Interactive
LendingTree , Expedia, uDdate.com,
TVTravelGroup, Interval International,
Remaining shares ofTicket master
Renamed to IAC
Purchased in 2000
Acquired in 2004
Purchased in 2005
• Stock market skeptical about multiple brands under one roof
• Expedia.com, hotels.com
• All the travel businesses put
under a separately traded
• Lending tree,Ticket master,
match.com , ask.com
• Lower cost companies
having high profit marginsIAC
In 2007 IAC decided to focus on its core
competency-’Online search and
entertainment based advertisement markets’
which were growing rapidly and spinning off
its older assets.
To achieve this goal, the company split into
five public companies in 2008, with IAC
retaining theWeb properties.
• Ask.com,CitySearch.com, Match .com, CollegeHumour.com
• Entertainment, personal and search based websites having prosperous future
• Advertising & Subscription Based Revenue Models.
• HSN.com, FrontGate,GarnetHill,CornerStone
• Transactional Based Revenue Model.
• Ticketmaster - domestic and international
• Ticket Sales & Distribution
• Transactional Based Revenue Model.
• Interval, CondoDirect
• Operates membership programs for vacation owners
• Subscription & Advertising Based Revenue Models.
• LendingTree.com, RealEstate.com
• Connects Individuals to lenders(interactive e-commerce)
• Transactional & Subscription Based Revenue Models.
Since the revenue is high as compared to
previous years along with a healthy organic
growth rate, the company progress can be
said to be on the right track.
Periods 2009 2010 2011
March 332.01 378.178 460.213
June 340.045 394.244 485.404
September 336.577 421.652
Note: Units in Millions of U.S. Dollars
Developing the traffic eco-system
Focus on core competencies rather than
spread out over various businesses
Developing brand loyalty
Establishing membership activities &
Integrating companies working in similar
What is portal ?
Will help in developing brand loyalty
Promotional offerings & better advertising
Would enhance the market power of IAC,
possibly resulting in a better stock price.
(-) conflicts between businesses providing
No physical presence
Act as a facilitator between supply & demand
Mostly services are transactional,
subscription and advertisement based
Low operating expenses
All about searching & buying
Brief about AOL time warner merger
IAC/interActiveCorp AOL andTimeWarner
acquistions of emerging businesses Both were established businesses in their
mainly because of aggressive expansion
Out of need
more of a holding company Proper merger
independent businesses Supplementary businesses
MISTAKES IAC SHOULD AVOID
Proper blend of the cultural & professional
Did not have proper blend of culture and
Formation of a proper detailed strategy
Main cause for failure of merger is lack of
Giving relevant results which promote other
Help in better analyzing the customer
requirements by reviewing the searches
Users should be previously notified
Helps represent the company as a