IAC Inc. (IAC)

History and Background

IAC (InterActiveCorp) was founded in 1995 by Barry Diller as Silver King Communications. Over time, it evolved through numerous acquisitions and spin-offs, becoming a holding company for various internet and media businesses.

Core Business Areas

• Dotdash Meredith: Digital publisher with brands spanning lifestyle, food, home, and entertainment.
• Angi: Connects homeowners with service professionals for home repair and improvement projects.
• Search: Focuses on the development and distribution of search applications and related services.
• Emerging & Venture: Includes various early-stage investments and developing businesses.

Leadership and Structure

Joey Levin serves as the CEO of IAC. The company operates as a holding company with a decentralized structure, allowing each subsidiary to operate with a degree of autonomy.

Key Offerings

• Dotdash Meredith Brands: Includes brands like People, Better Homes & Gardens, Investopedia, and Allrecipes. Revenue is generated through digital advertising and subscription services. Competitors include other large digital publishers like Hearst, Conde Nast, and Gannett.
• Market Share (% Estimated for Digital Publishing): 5
• Angi Services: Platform connecting homeowners with service professionals. Competitors include HomeAdvisor (ANGI), Thumbtack, and local service providers.
• Market Share (% Estimated for Home Services Platforms): 12
• Ask Applications: Search applications and toolbars. Competitors include Google (GOOGL), Microsoft (MSFT), and Yahoo (APOLLO).
• Market Share (% Estimated for Search Toolbar Distribution): 15

Industry Overview

The internet and media industry is dynamic and competitive. The market continually evolves due to changing consumer preferences and technological advancements. Digital advertising and e-commerce are key drivers.

Positioning

IAC positions itself as an incubator and operator of various internet businesses, often investing in or acquiring companies and then spinning them off once they reach maturity. This strategy allows them to capitalize on emerging trends and create shareholder value.

Total Addressable Market (TAM)

The TAM across IAC's segments is vast, estimated in the hundreds of billions. IAC focuses on niche markets within digital publishing, home services, and search, and aims to gain significant share in those targeted areas.

Key Competitors

• GOOGL
• META
• HOME

Competitive Landscape

IAC's competitive advantage lies in its ability to identify and nurture promising internet businesses. However, it faces stiff competition from larger, more established players in each of its core segments.

Meredith Corporation

• Year: 2021
• Acquisition Price (USD millions): 2700
• Strategic Rationale: Acquisition to combine Meredith's print and digital assets with Dotdash, creating a leading digital publishing platform.

Care.com

• Year: 2020
• Acquisition Price (USD millions): 500
• Strategic Rationale: Expansion of Angi's home services offerings into care services.

Historical Growth: IAC's growth has been driven by strategic acquisitions and the successful spin-offs of companies like Expedia, Match Group and Vimeo. Revenue has increased over the past decade, but profitability has been inconsistent.

Future Projections: Analysts project continued revenue growth driven by Dotdash Meredith and Angi. Profitability is expected to improve as cost-cutting measures and strategic initiatives take effect. Revenue growth is expected to grow 5-10% annually over the next three years.

Recent Initiatives: Recent initiatives include the continued integration of Meredith's brands into Dotdash Meredith, expansion of Angi's services, and investments in new ventures.

IAC is a holding company with a diverse portfolio of internet businesses that has a proven track record for nurturing and spinning off mature companies, which is a large part of their strategy. While some segments perform well, generating consistent revenue, others lag in profitability and are dependant on outside factors. Continued acquisition of promising internet companies and spin-offs will be necessary for IAC to maintain long-term viability. Intense competition in all business segments will be its largest barrier to growth.

Data Sources:

• IAC Inc. SEC Filings (10-K, 10-Q)
• Company Investor Relations Materials
• Analyst Reports
• Market Research Reports

Disclaimers:

This analysis is based on publicly available information and represents an opinion. Investors should conduct their own due diligence before making investment decisions. Market share data are estimates and may vary.