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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7—LONG-TERM INVESTMENTS (Continued)
impairment charge is included in "Equity in (losses) income of unconsolidated affiliates" in the accompanying consolidated statement of
operations.
On June 11, 2008, pursuant to an agreement with Points International, Ltd. ("Points"), IAC converted its preferred shares of Points into
29.4 million common shares of Points, sold 27.8 million of such common shares to a syndicate of underwriters for $42.4 million and surrendered
the remaining 1.6 million common shares to Points for cancellation. In addition, IAC's nominees to the board of directors of Points stepped
down. The transaction resulted in a pre-tax gain of $29.1 million, which is included in "Gain on sale of long-term investments" in the
accompanying consolidated statement of operations. Prior to this transaction, IAC accounted for its investment in Points under the equity method
due to IAC's representation on the board of directors of Points. Following this transaction, IAC accounted for its remaining investment in Points
as a marketable equity security. During the fourth quarter of 2009, IAC sold its remaining investment in Points resulting in a nominal gain.
The Company's equity in (losses) income of its unconsolidated affiliates for each of the years in the three year period ended December 31,
2009 is presented below (in thousands):
Summarized financial information for Jupiter Shop is as follows (in thousands):
At December 31, 2009, the Company's investments accounted for under the equity method, along with the principal market that the investee
operates, and IAC's relevant ownership percentage include:
84
Years Ended December 31,
2009
2008
2007
Equity in income of Jupiter
Shop
$
—
29,836
25,974
Equity in losses of
unconsolidated affiliates
other than Jupiter Shop
(14,014
)
(13,196
)
(3,622
)
Total
$
(14,014
)
16,640
22,352
As of
November 30, 2008
and for the period
December 1, 2007
to November 30, 2008
2007
Current assets
593,911
244,918
Non
-
current assets
88,568
239,564
Current liabilities
(143,466
)
(111,168
)
Non
-
current liabilities
(4,565
)
(3,629
)
Net sales
1,021,215
866,739
Gross profit
501,849
336,809
Net income
99,452
86,581
Meetic (Europe)
26.84
%
The Health Central Network, Inc. (United States)
35.22
%
MerchantCircle Inc. (United States)
16.88
%
Medem, Inc. (United States)
35.97
%
DJ/IAC Online Ventures, LLC (United States)
50.00
%