Malone: Diller extravagant
EmptyBarry Diller has been overly extravagant, drawing a huge salary from IAC/InterActiveCorp. as its stock languished, Liberty Media chairman John Malone told a Delaware court Monday.
Malone complained that Diller treated publicly traded IAC as if it were "his business" and also of his "aggressive" use of IAC's corporate aircraft.
Liberty Media owns 30% of IAC but controls 62% of the voting power. Diller plans on slicing IAC into several different companies, each with a voting structure that reduces Liberty's control to 30%.
Malone objects to the plan and is asking the courts to let him replace some of IAC's board members. He also is asking the court to invalidate a proxy agreement that gives Diller voting rights to Liberty's IAC shares.
In the first day of court testimony to settle the issues, Malone said Diller has earned more than $1 billion from IAC but that IAC stock actually has sunk 20% in the past eight years.
The trial is expected to last up to five days and include testimony from Liberty CEO Greg Maffei and Diller, with vice chancellor Stephen Lamb issuing a ruling about three weeks after the trial ends.
Wire services contributed to this report.