IAC/InterActiveCorp (IAC) makes matches and conquers daily beasts. Its portfolio of websites includes influential brands with a fair share of name recognition, such as dating sites Match.com and Tinder, current affairs magazine The Daily Beast, video service Vimeo, and home service referral sites HomeAdvisor and Angie’s List. IAC also operates entertainment site CollegeHumor.com; search engine Ask.com; and fitness app Daily Burn. The company has a service agreement with Google that runs through 2020. About two-thirds of revenue comes from the US. Chairman Barry Diller, his wife Diane von Furstenberg, and his stepson Alexander von Furstenberg collectively control 43% of IAC's voting power.
IAC operates through six business segments: Match Group (about 40% of revenue), ANGI Homeservices (about 25%), Applications (about 15%), Vimeo (about 5%), Dotdash (about 5%), and Emerging & Other (about 10%).
Match Group holds a portfolio of dating sites, including Match, Tinder, and OkCupid, among others. The segment, which claims nearly 8 million average subscribers, earns revenue from subscription fees and à la carte services, which charge users for a specific action. It also gets money from online advertisers.
ANGI Homeservices connects consumers with home professionals under brands including HomeAdvisor and Angie’s List. Professionals pay a fee for consumer matches and booking fees from completed jobs. They also pay membership subscriptions. The business also sells ads to service professionals, and membership subscriptions to consumers.
Applications includes desktop applications, such as PDF converter FromDocToPDF, and mobile applications such as fitness program Daily Burn.
Vimeo operates a platform for producers to stream, host, and monetize videos online. Revenues primarily come from Software-as-a-Service (SaaS) fees paid by some 950,000 subscribers for premium capabilities.
Dotdash includes internet content on a variety of topics such as health and wellness (Verwell brands); lifestyle (Spruce family); and personal finance (Investopedia), among others. Revenue mainly comes from ads and affiliate commissions, when Dotdash refers users to commerce partner websites resulting in a purchase.
Emerging & Other includes Ask Media, The Daily Beast, College Humor, and IAC Films.
IAC, based in New York City, has operations in North America, Europe, and Asia. Its ANGI Homeservices segment operates across the US, as well as in Austria, Canada, France, Germany, Italy, the Netherlands, and the UK. The US accounts for two-thirds of total company revenue.
Sales and Marketing
IAC markets its services through a wide variety of activities including traditional marketing, television, print, and radio advertising, public relations, and e-mail campaigns. The company spent about $1.4 billion on advertising in 2018. IAC is fairly reliant on Google for revenue; the search giant is IAC’s biggest customer, supplying about a fifth of its revenue.
Under its agreement with Google, which runs through 2020, the search giant provides IAC and its partners with sponsored listings and other search-related services for display on both desktop and mobile platforms.
As IAC has reshaped its portfolio through acquisitions and divestitures over the past five years, it has seen revenue steadily increase (except for a hiccup in 2016), hitting a company high in 2018. The company's net income has been more volatile; profits dropped in 2015 and it recorded a loss in 2016, while showing strong growth in 2017 and 2018.
Revenue rose 29% to $4.3 billion in 2018, up from $3.3 billion in 2017. The company saw growth across all six of its reporting segments, but the increase was driven primarily by strong results in Match (because of higher average subscribers, mainly outside North America) and ANGI Homeservices (because of a jump in service requests for HomeAdvisor and Handy).
IAC’s net income more than doubled in 2018 to $627 million as a result of the rise in revenue and tight control over operating expenses, particularly seen in a shift toward brands with a lower marketing spend in the Match Group segment and lower marketing and selling expense as a percentage of revenue in the ANGI Homeservices segment. Results were also impacted by $306 million in other income reported in 2018 (mostly unrealized gains related to equity investments and proceeds from divestitures), compared to $16 million in other expense the prior year.
Cash at the end of 2018 was $2.1 billion, an increase of $500 billion from the prior year. Cash from operations contributed $988.1 million to the coffers, while investing activities used $173.4 million, mainly for purchases of marketable debt securities and capital expenditures. Financing activities used another $312.8 million for taxes paid related to stock-based awards, dividends to stockholders, and stock repurchases.
IAC continues to introduce new and enhanced content, products, and services in response to evolving trends and technologies, and is focused on consumer-facing internet companies that are smaller than massive platforms such as Facebook or Netflix. While busy expanding through acquisitions, it also periodically sheds assets not in line with its current strategy to balance out its portfolio of brands. It recently sold CityGrid, Dictionary.com, The Princeton Review, ShoeBuy, and PriceRunner.
Its largest unit, Match, recently restructured its Asia/Pacific team to grow its dating app brands, including Tinder, in the region. It plans for the region to account for one-fourth of Match revenue by 2023. Southeast Asia, which has a dozen high-density cities with over a million people where more young people are moving, is an especially attractive market.
Meanwhile, the company is banking on its ANGI Homeservices to capitalize on an influx of millennials in the US that are starting to buy their own homes and need to find plumbers, electricians, and other home services professionals. The business segment had initially concentrated on domestic repairs and renovations, but recently branched into a new market with its purchase of Handy, which specializes in finding professionals that provide cleaning services, furniture assembly, and other lower cost tasks that appeal to millennial renters.
Mergers and Acquisitions
IAC acquired iTranslate and TelTech in 2018 to expand its Applications business segment. iTranslate develops and distributes applications that teaches foreign languages to users anywhere in the world. TelTech develops and distributes mobile apps that help protect consumer privacy. Also that year IAC bought controlling interests in BlueCrew, a staffing platform that connects temp workers with traditional blue-collar jobs in areas like warehouse, delivery and moving, data entry, and customer service, and Hinge, a dating app. The company added BlueCrew to its Emerging & Other segment, while Hinge boosts its Match Group.
ANGI Homeservices acquired Handy Technologies in 2018. Handy is a platform for connecting individuals looking for household services such as cleaning and handyman jobs with pre-screened independent service professionals. The previous year IAC bought Angie’s List for $500 million, combining it with its HomeAdvisor unit to strengthen its position in the home services market. Renamed ANGI Homeservices, it became a significant part of IAC’s revenue stream.
IAC can trace its roots back to 1986, when it began as a hybrid broadcasting and electronic retail company. Since its founding it has undergone several name changes (from Silver King Broadcasting Company to HSN to USA Networks to USA Interactive to InterActiveCorp, and finally, to IAC/InterActiveCorp), as well as a number of significant corporate reorganizations.
The company's history is closely tied to that of its founder, Barry Diller. The media mogul dropped out of UCLA in 1958 to work in the mailroom at the William Morris talent agency (he was promoted to agent in 1961). He got into television in 1968 as the VP of programming for ABC, where he developed the concepts of the miniseries and the made-for-TV movie. Diller's next step took him into movies as chairman of Paramount Pictures in 1974. His 10-year Paramount stint produced films including Raiders of the Lost Ark. But Diller's biggest claim to fame is his tenure at FOX. Beginning in 1984, he led the brash television network from joke to jewel.
Diller established his own company, which eventually became IAC, after taking over the Home Shopping Network and its separately traded distribution unit, Silver King Communications. The company continually revaluates its assets. Former IAC spinoffs include Expedia, LendingTree, and Ticketmaster.
555 W 18TH ST
New York, NY 10011-2822
Phone: 1 (212) 314-7300
Employer Type: Publicly Owned
Stock Symbol: IAC
Stock Exchange: , NASDAQ
Chairman, IAC/InterActiveCorp and Expedia: Barry Diller
Vice Chairman: Victor A. Kaufman
CEO: Joseph Levin
Employees (This Location): 3,300
Employees (All Locations): 7,800
New York, NY
San Francisco, CA
West Hollywood, CA
New York, NY