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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7—LONG-TERM INVESTMENTS (Continued)
revenue approach in the context of a different valuation environment than that which prevailed when our initial investment was made. The
Company records its share of the results of HealthCentral on a one-quarter lag and, along with the impairment charge, includes it within "Equity
in (losses) income of unconsolidated affiliates" in the accompanying consolidated statement of operations. With respect to its investment in
HealthCentral, the non-IAC stockholders have a fair value put right that is exercisable for a sixty-day period following the delivery of
HealthCentral's audited financial statements for the year ended December 31, 2011. The Company has a fair value call right that is exercisable
for a sixty-day period following the delivery of HealthCentral's audited financial statements for the year ended December 31, 2010. If the put or
call is exercised IAC would have the obligation or right, respectively, to purchase all the shares held by the non-
IAC stockholders; IAC can settle
the purchase price in cash or IAC common shares at its option.
On June 5, 2009, Match completed the sale of its European operations to Meetic and as consideration, Match received a 27% stake in
Meetic. The difference between the carrying value of the Company's investment in Meetic and its underlying equity in the net assets of Meetic
relates to indefinite and definite-lived intangible assets and goodwill. The definite-
lived intangible assets have useful lives of not more than three
years and a weighted
-average life of approximately one year. The Company records its share of the results of Meetic along with any related
amortization of intangibles on a one-
quarter lag within "Equity in (losses) income of unconsolidated affiliates" in the accompanying consolidated
statement of operations. In June 2010, a cash dividend was approved by Meetic's shareholders. The Company recorded its proportionate share of
the dividend from Meetic of $11.4 million (€9.1 million) as a reduction to the carrying value of its investment in Meetic. The fair value of the
investment in Meetic, based on its quoted market price, was $130.0 million (€99.0 million) at December 31, 2010 and $166.7 million
(€115.8 million) at December 31, 2009.
On December 8, 2008, the Company sold its 30% equity stake in Jupiter Shop, a Japanese TV shopping company, for $493.3 million. The
transaction resulted in a pre-tax gain of $352.0 million, which is included in "Gain on sales of long-term investments" in the accompanying
consolidated statement of operations. The pre-tax gain included $21.5 million of foreign currency translation gains that were recognized into
earnings at the time of the sale. Additionally, in the fourth quarter of 2008, the Company recorded a $5.5 million impairment charge related to
the write-down of an equity method investment to its fair value. The decline in value was determined to be other-than-temporary due to the
equity method investee's operating losses, negative operating cash flows and the resulting need for changes to the investee's existing business
model. The resulting valuation of the investee also reflected the assessment of market conditions and the investee's ability to successfully
restructure. The 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 sales 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,
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