IAC CEO Levin on Valuation, Spinoffs, Future Technology

The transcript covers a discussion with IAC's CEO about the company's valuation, asset management, and strategic decisions regarding spin-offs. The CEO explains the reasons behind market discounts and highlights IAC's successful capital allocation. The conversation also explores the potential for spinning off subsidiaries like Match and Angi Homeservices, and evaluates the value of IAC's publishing and applications businesses. The CEO outlines IAC's future direction, emphasizing a focus on incubation and interactivity in technology-driven marketplaces, while navigating competition with major tech companies.

What is one reason the CEO gives for IAC's valuation discount?

• Lack of direct access to businesses

• Limited market presence

• High employee turnover

• Poor customer service

What does the CEO say about the criteria for spinning off a subsidiary?

• It must reach a certain revenue threshold

• There is no specific formula

• It must be a market leader

• It must be unprofitable

Why does the CEO believe IAC should retain its applications business?

• It has high market multiples

• It provides consistent cash flow

• It is a market leader

• It is easy to sell

What is one of the future directions IAC is considering?

• Expanding into hardware manufacturing

• Focusing on interactivity in marketplaces

• Developing a new operating system

• Entering the food industry

How does the CEO describe IAC's approach to new ventures?

• Primarily technology-driven

• Aggressive and risk-taking

• Focused on interactivity and simplicity

• Dependent on external partnerships

What challenge does IAC face when expanding its business?

• Limited financial resources

• Competition with major tech companies

• Lack of skilled workforce

• Regulatory hurdles

What is the CEO's view on the role of technology in IAC's future?

• It should be outsourced to tech giants

• It should enhance interactivity in existing markets

• It should be minimized to reduce costs

• It should focus on cutting-edge innovations