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Investing

Diller & IAC In China: You Bet Your Ask (IACI, BIDU)

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By Douglas A. McIntyre Updated Published
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Despite a pending break-up in the media conglomerate, IAC/Interactive (NASDAQ:IACI) is spending up to $100 million to launch a new Internet company…. In China.  IAC is planning bring its Ask.com to the Chinese market, although reports put this as a search and advertising company rather than as a transaction-based company.

The new Internet company could launch within a year and its Ask.com could be available within two years.  With the valuations that Baidu.com (NASDAQ:BIDU) and others have seen, this can’t be that big of a surprise despite the pending break-up of the online and media conglomerate.  Baidu.com trades at more than 25-times 2008 projected revenues, while  IAC trades around 1.15-times 2008 projected revenues.  It’s a wonder with numbers like this that everyone hasn’t followed Nixon to China.

IAC/Interactive is under review for our Special Situation Investing Newsletter that covers buyouts, break-ups, spin-offs, reorganization, restructuring, and more.

Jon C. Ogg
November 23, 20

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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