a case study on Inter Active Corp. (IAC) in the subject of E-Business.

1. E – Business Case Study
Presented by:
Disha Dorkadi – 107
RashiAgarwal – 118
Sulabh Gugnani – 204
Balagopal P – 301
Ishan Parekh - 3151

2.  IAC/InterActiveCorp. (IAC) is an Internet company with
more than 50 brands serving consumer audiences across
more than 30 countries.
 Currently operates in four business divisions:
Search, Personals, ServiceMagic and Media & other.
 Its strategy focuses on aggressive growth, which has
lead to the various mergers and acquisitions over the
years.
 It is an company with interactive media & advertising as
its core competency.
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3.  Served as a vice president of PrimeTimeTelevision
 Chairman and chief Executive of Paramount Pictures
Corporation for 10 years
 In 1983, became the president of Paramount’s EAC group
 From 1984 to 1992, was the chairman and CEO of Fox, inc.
 QVC - HSN from 1992-1994
 1994 - chairman and CEO of Silver king Communications
(much later renamed as IAC)
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4. Silver King
Communications
HSN, Savoy Pictures
(HSN inc)
50% ofTicket Master
group
USA Networks and Sci Fi
(USA Networks, inc)
Citysearch.com
Match.com
Merged in 1996
Acquired in 1997
Acquired in 1998
Purchased in 1999
Purchased in 1998
Acquired another stake
from public in May 1998
and the remaining in
January 2003.
Most of it later sold in 2001.
Ticket Master merges
with citysearch
the exclusive dating site for
yahoo since may 2010. 4

5. Precision response corporation
Renamed to USA Interactive
LendingTree , Expedia, uDdate.com,
TVTravelGroup, Interval International,
Hotels.com, RealEstate.com,
Remaining shares ofTicket master
Renamed to IAC
Purchased in 2000
Purchased in
2002-2003
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6. Acquired in 2004
Purchased in 2005
2005-07
launched
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7. • Stock market skeptical about multiple brands under one roof
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8. • Expedia.com, hotels.com
• All the travel businesses put
under a separately traded
company.
Expedia
Inc
• Lending tree,Ticket master,
match.com , ask.com
• Lower cost companies
having high profit marginsIAC
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9.  In 2007 IAC decided to focus on its core
competency-’Online search and
entertainment based advertisement markets’
which were growing rapidly and spinning off
its older assets.
 To achieve this goal, the company split into
five public companies in 2008, with IAC
retaining theWeb properties.
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10. IAC
• Ask.com,CitySearch.com, Match .com, CollegeHumour.com
• Entertainment, personal and search based websites having prosperous future
ahead
• Advertising & Subscription Based Revenue Models.
HSN
• HSN.com, FrontGate,GarnetHill,CornerStone
• RetailingWebsites
• Transactional Based Revenue Model.
Ticket
Master
• Ticketmaster - domestic and international
• Ticket Sales & Distribution
• Transactional Based Revenue Model.
Interval
Int’l
• Interval, CondoDirect
• Operates membership programs for vacation owners
• Subscription & Advertising Based Revenue Models.
Lending
Tree
• LendingTree.com, RealEstate.com
• Connects Individuals to lenders(interactive e-commerce)
• Transactional & Subscription Based Revenue Models.
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16.  REVENUE
Since the revenue is high as compared to
previous years along with a healthy organic
growth rate, the company progress can be
said to be on the right track.
Periods 2009 2010 2011
March 332.01 378.178 460.213
June 340.045 394.244 485.404
September 336.577 421.652
Note: Units in Millions of U.S. Dollars
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17.  Developing the traffic eco-system
 Focus on core competencies rather than
spread out over various businesses
 Developing brand loyalty
 Establishing membership activities &
promotional activities
 Integrating companies working in similar
divisions
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18.  What is portal ?
 Will help in developing brand loyalty
 Promotional offerings & better advertising
through portals
 CRM
 Would enhance the market power of IAC,
possibly resulting in a better stock price.
 (-) conflicts between businesses providing
similar services
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19.  No physical presence
 Act as a facilitator between supply & demand
 Mostly services are transactional,
subscription and advertisement based
 Low operating expenses
 All about searching & buying
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20.  Brief about AOL time warner merger
IAC/interActiveCorp AOL andTimeWarner
acquisitions Merger
acquistions of emerging businesses Both were established businesses in their
domain
mainly because of aggressive expansion
strategies
Out of need
more of a holding company Proper merger
independent businesses Supplementary businesses
MISTAKES IAC SHOULD AVOID
Proper blend of the cultural & professional
practices
Did not have proper blend of culture and
professional practices.
Formation of a proper detailed strategy
before merger
Main cause for failure of merger is lack of
strategic planning.
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21.  Giving relevant results which promote other
sister websites
 Help in better analyzing the customer
requirements by reviewing the searches
 Cross marketing
 Users should be previously notified
 Helps represent the company as a
transparent one
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