Many of you might have forgotten IAC/InteractiveCorp’s Daily Beast and Newsweek agreed to merge operations last November to create a new entity called, well… Newsweek. And that would be understandable as it’s been pretty quiet till this week’s interview scoop with the former IMF chief Dominque Strauss-Kahn’s accuser.
“Apple fans lined up overnight by the hundreds outside stores in the United States, Europe and Japan to snap up the latest iPhone, setting a new benchmark in the fast-growing smartphone market,” writes Franklin Paul, Marie Mawad and Sachi Izumi.
from Summit Notebook:
In the run-up to the annual Reuters Media Summit, taking place in New York and London next week, we have been asking experts and executives how they think media companies should reinvent themselves for the 21st Century.
IAC chief Barry Diller has spent the last year building and then sitting on a pile of cash, which rose to $2 billion in the first quarter — only some $400 million less than its entire market cap of $2.4 billion. Journalists and Wall Street have asked Diller repeatedly how he intends to use the cash. A big M&A move perhaps? A generous one-time dividend maybe? Or share buybacks?******Diller is focused on adding to his empire of Internet units in small increments rather than making major acquisitions. That empire includes dating site Match.com, search engine Ask.com, event planning site evite and many others.******Here’s Diller back in April on the first quarter conference call with analysts: “While I can’t say what we’ll do, obviously, other than invest in the businesses we have, because we believe they’re worthy of investments, relatively small scale, we’re open but I am actually not optimistic about being able to extensively spend the enormously large amounts of cash that we have. It could change on a dime, but there it is at the moment.”******True to his word Match.com said on Tuesday it has signed an agreement to buy People Media, an operators of targeted dating sites for $80 million in cash from American Capital Ltd.******People Media owns 27 dating sites incluing BlackPeopleMeet.com, SingleParentMeet.com and SeniorPeopleMeet.com with a combined 255,000 paying subscribers. IAC said People Media generated $11.6 million in earnings before interest, taxes, depreciation and amortization (EBITDA) in 2008.
from Summit Notebook:
IAC Chief Executive Barry Diller took several groups to task at the Reuters Media Summit, but he reserved special disgust for CEOs at profitable companies who add to the country's rising unemployment rate.
NBC is putting up big numbers so far in the Olympics.
Start with the opening ceremony. While some complained that the event couldn’t be seen live in the United States, the move to delay the broadcast and run it during prime-time paid dividends. Some 34 million viewers tuned in, up about 35 percent since the last summer games.
Call it the new simplicity. IAC’s businesses are better off on their own in the market than trying to work with a strategic partner, according to chief mogul Barry Diller.
Recently empowered by a court decision that says he can do what he wants with IAC with little limitation from controlling shareholder Liberty Media, Diller said today a plan to spin off four major IAC units probably won’t involve any partners and that he was on track to complete the separation in August.