IAC/InterActiveCorp (IAC) satisfies inquisitive minds. The Internet conglomerate owns more than 150 brands, including search engine Ask.com, local guide Citysearch (part of advertising network CityGrid Media), dating site Match.com, About.com, video service Vimeo, and home service provider network HomeAdvisor. Other IAC holdings include Shoebuy.com, Dictionary.com, and a majority stake in Connected Ventures, the parent company of entertainment site CollegeHumor.com. It also operates current affairs Web magazine Daily Beast and publishes Newsweek magazine through its majority-owned The Newsweek/Daily Beast Company.
Focused in the areas of search, applications, online dating, local and media, IAC's family of websites is one of largest in the world, with more than a billion monthly visits across more than 30 countries.
IAC has operations in North America, Europe (including France and the UK), Latin America, Australia, and Asia.
The company operates through 4 main business segments: Search & Applications, Match, Local, and Media & Other. Search & Applications is the company's biggest money-maker, anchored by Ask.com. The segment brought in more than half of the company's revenue in fiscal 2012.
Match is the second largest segment in terms of revenue. Its Local segment consists of HomeAdvisor (formerly ServiceMagic) and CityGrid Media. HomeAdvisor is a leading online marketplace for matching consumers with home services professionals in the US. CityGrid Media is an online media company that owns and operates CityGrid, an advertising network that integrates local content and advertising for distribution to both affiliated and third party publishers across web and mobile platforms, as well as proprietary websites, such as Citysearch.com and Urbanspoon.com, through which consumers can access local merchant information and reviews online.
Media & Other includes assets such as Newsweek/Daily Beast, Connected Ventures, Shoebuy, and video-sharing website Vimeo.
Sales and Marketing
The company markets its services through a wide variety of activities including traditional marketing, television advertising, print advertising, and radio advertising, public relations, and e-mail campaigns. It spent about $828 million on advertising and marketing promotions during fiscal 2013.
A significant component of the company's revenue is attributable to a services agreement with Google. In fiscal 2013, Company earned revenue of about $1.5 billion from Google.
IAC's revenue increased 10% in fiscal 2013 compared to the previous year. It reported $3 billion in revenue for fiscal 2013, up from $2.8 billion in revenue for fiscal 2012. The Search & Applications segment's revenue increased due to a strong growth from both applications and websites. Match revenue and Media revenue also increased during 2013.
The increase in revenue resulted in increased net income in fiscal 2013 compared to the prior year. The company reported $285 million in net income for fiscal 2013, up from $159 million in net income for fiscal 2012.
The strong revenue and net income helped IAC's cash flow go up by some $60 million during fiscal 2013 compared to fiscal 2012 levels.
Mergers and Acquisitions
The company has been expanding its business and brands portfoilo through acquisition. In 2013 HomeAdvisor acquired Werkspot.nl, the Netherlands' leading online platform connecting homeowners with qualified craftsmen.
In 2012 IAC acquired online information portal About from The New York Times Company for some $300 million. The deal is the latest in the media company's efforts at using acquisitions to beef up its Search operations; IAC is adding About to its Ask.com holdings.
IAC constantly works to improve its websites. IAC also changed the name of its ServiceMagic business to HomeAdvisor in 2012. The move was part of a major rebranding strategy designed to better describe the business and narrow its focus on home maintenance, improvement, and repairs.