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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 and Vimeo. 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 100 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 23 and “Item 8-Consolidated Financial Statements and Supplementary Data,” beginning on page 42.
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 a leading media and internet company.
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 December 2006, the Company acquired Connected Ventures, LLC, which at that time owned and operated CollegeHumor.com and
Vimeo. The Company transferred all of Vimeo’s assets to a separate, wholly-owned subsidiary of IAC, Vimeo, LLC, in July 2008.
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 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.
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, which primarily consists of About.com, a comprehensive
online content and reference library. In December 2012, we acquired Tutor, an online tutoring service.
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