ServiceMagic 2012 Annual Report Download - page 5

Table of Contents
PART I
Item 1. Business
OVERVIEW
Who We Are
IAC is a leading media and internet company comprised of more than 150 brands and products, including Ask.com, About.com, Match.com,
HomeAdvisor.com and Vimeo.com. 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. The results of operations of IAC's various
businesses are reported within the following five segments: Search & Applications, Match, Local, Media and Other.
For information regarding the results of operations of IAC's reportable segments, as well as their respective contributions to IAC's
consolidated results of operations, see “Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations”
beginning on page 22 and “Item 8-Consolidated Financial Statements and Supplementary Data,” beginning on page 41.
All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp.
Our History
IAC, initially a hybrid media/electronic retailing company, was incorporated in July 1986 in Delaware under the name Silver King
Broadcasting Company, Inc. After several name changes (first to HSN, Inc., then to USA Networks, Inc., USA Interactive and InterActiveCorp,
and finally to IAC/InterActiveCorp) and the completion of a number of significant corporate transactions over the years, the Company
transformed itself into the leading media and internet company it is today.
From 1997 through 2001, the Company acquired a controlling interest in Ticketmaster Group (and the remaining interest in 1998) and Hotel
Reservations Network (later renamed Hotels.com), as well as acquired Match.com and other smaller e-commerce companies. As its
transformation from a hybrid media/electronic retailing company continued to evolve, in May 2002, the Company acquired a controlling interest
in Expedia.com and contributed its entertainment assets to Vivendi Universal Entertainment LLLP, or VUE, a joint venture then controlled by
Vivendi. The Company continued to grow its portfolio of e-commerce companies by acquiring all of the shares of Expedia.com, Hotels.com and
Ticketmaster that it did not previously own, together with a number of other e-commerce companies (including LendingTree and Hotwire), in
2003.
In 2005, IAC acquired Ask Jeeves, Inc. (now known as IAC Search & Media, Inc.) and, on August 9, 2005, completed the separation of its
travel and travel1related businesses and investments into an independent public company called Expedia, Inc. That year, IAC also sold its
common and preferred interests in VUE to NBC Universal.
In July 2008, the Company acquired the Lexico Publishing Group, owner of various reference websites, including Dictionary.com. On
August 20, 2008, IAC separated into five publicly traded companies: IAC, HSN, Inc., Interval Leisure Group, Inc., Ticketmaster and
Tree.com, Inc. In this report, we refer to this 2008 transaction as the “Spin-Off.” Immediately following the Spin-Off, IAC effected a one-for-
two reverse stock split.
In June 2009, we sold the European operations of Match.com to Meetic, S.A. ("Meetic"), a leading European online dating company based
in France, in exchange for a 27% interest in Meetic and a €5 million note. In July 2009, we acquired PeopleMedia, Inc., operator of a number of
demographically targeted dating websites.
In December 2010, we exchanged the stock of a wholly1owned subsidiary that held our Evite, Gifts.com and IAC Advertising Solutions
businesses and approximately $218 million in cash for substantially all of Liberty Media Corporation's equity stake in IAC. See “Item 7-
Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8-Consolidated Financial Statements and
Supplementary Data.”
In February 2011, we acquired OkCupid, an ad1supported online personals service. During the third quarter of 2011, we increased our
ownership stake in Meetic to 81%. In September 2012, we acquired The About Group. In December 2012, we acquired Tutor, an online tutoring
service.
EQUITY OWNERSHIP AND VOTE
IAC has outstanding shares of common stock, with one vote per share, and Class B common stock, with ten votes per share and which are
convertible into common stock on a share for share basis. As of February 1, 2013, Barry Diller, IAC's Chairman
2