IAC CEO Levin Says There's No Formula for Spinoffs

IAC CEO Levin Says There's No Formula for Spinoffs

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the valuation of a company, highlighting that some assets are valued at a negative billion dollars. The CEO addresses concerns about this valuation, explaining the reasons for asset discounting and emphasizing the company's strong capital allocation and market performance. The discussion also covers the considerations for spinning off businesses, noting that decisions are based on optimizing value for both the subsidiary and the remaining company.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current valuation of IAC's assets excluding cash?

A positive billion dollars

Zero

A negative billion dollars

Two billion dollars

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a reason for the market discounting collections of assets?

High tax efficiency

Lack of direct access to businesses

Potential cash mismanagement

Uncertain market performance

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the CEO believe is crucial for changing market perceptions?

Increasing revenue

Effective storytelling and execution

Reducing tax efficiency

Expanding into new markets

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the CEO's stance on spinning off subsidiaries like Match and Angi Homeservices?

Spin-offs are done annually

Spin-offs are avoided at all costs

There is a strict formula for spin-offs

Spin-offs are based on a confluence of events

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is NOT a factor in deciding whether to spin off a subsidiary?

The best interest of the company

The age of the subsidiary

The subsidiary's revenue

The market value of the subsidiary