Author Topic: IACI - IAC/InterActiveCorp  (Read 12911 times)

Jurgis

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Re: IACI - IAC/InterActiveCorp
« Reply #40 on: November 08, 2018, 06:14:20 AM »
Of course he could live another 20 years, but conditional mortality tables put his life expectancy at around what another 5 to 6 years (maybe higher because he is a billionaire...).

I would disagree re Buffet. Don't get me wrong he is the GOAT, but he underperformed over the last 10/15 years because he didn't bet on the internet. The next capital allocators at Berkshire I think will do better.

Also, I am confident the Berkshire culture can be passed down from generation to generation, not sure I know enough about IAC to say the same thing.

OK. We have completely opposite views on Berkshire, but that's OK. Best.  8)
"Before you can be rich, you must be poor." - Nef Anyo
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Bluedevilvalue

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Re: IACI - IAC/InterActiveCorp
« Reply #41 on: November 08, 2018, 06:48:32 AM »
Do you guys not think Joey Levin can take the reigns? Seems like he's been doing a good job since 2015.

Jerry Capital

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Re: IACI - IAC/InterActiveCorp
« Reply #42 on: November 08, 2018, 06:55:46 AM »
I don't think it's possible to judge his abilities when you have someone like Barry Diller essentially making all the capital allocations decisions above him.

With BRK you can get a feel for Ted/Todd with their autonomy from Buffett.

Would be happy to be proven wrong though, if anyone can't point me to some information that suggests so.

Bluedevilvalue

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Re: IACI - IAC/InterActiveCorp
« Reply #43 on: November 08, 2018, 03:05:56 PM »
An unclear succession plan is far from a dealbreaker for me. Given it's trading at a 15% discount to the public co's alone -- not counting the fast growing publishing, mobile app biz and vimeo -- I look at the capital allocation side as pure optionality (unless you think their capital allocation is -EV).

Their existing businesses alone are enough to make IAC exciting in my opinion. Barry Diller has some say there, but each company's performance will more-so be predicated on their distinct CEOs.

Don't get me wrong, I'm a big fan of Barry. Which is why I'm excited to get the capital allocation side of the business for below nothing

zen

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Re: IACI - IAC/InterActiveCorp
« Reply #44 on: November 12, 2018, 01:15:33 PM »

They announced a $560m or $2 per share special dividend, which the market didn't love -- clearly. Seems really odd from my perspective. Any ideas why they'd do this? Are they trying to attract income investors?


The dividend was likely forced on Match by IAC, otherwise it makes little sense and puts them in a tough spot. The likely reason is a MTCH spin for IAC shareholders. IAC gets some cash before letting it go. As for that cash, they could be gearing up for an acquisition but that seems unlikely given the environment and commentary. They could try to reduce the valuation disconnect via a big IAC buyback. However that gap has closed recently with the sell off (was $3b about a month ago, ~1.7b now). Management did not address it on the most recent call as they have in the past 2 or 3, perhaps a tell.

I think IAC overplayed their hand. The market clearly didn't like the MTCH dividend and it exacerbated whatever hit MTCH was going to take for every so slightly down guidance. ANGI turned in a nice quarter, but the stock has been trading all over the place. It gapped up 15% and by the end of the day was down quite a bit and now over 20% from that post earnings high.

I like all 3 companies and own IAC. I am not worried about a succession plan for Diller, it's Joey Levin and he's excellent. Read his quarterly letters to get a feel for his style, very shareholder friendly.

Couple of other variables with regard to MTCH, very high short interest and the upcoming dividend, float increasing if remaining shares are spun out.