Barry Diller's IAC Posts Stronger Third-Quarter Results

20. Barry Diller
Andrew H. Walker/Getty Images

Chairman of IAC

The former studio mogul has moved into content 2.0-style via and Ben Silverman's multimedia studio Electus. The College Humor Show made it to MTV a couple of years ago, and Electus recently sold, among other things, Fashion Star to NBC. Diller also got fellow mogul John Malone to exchange his stake in IAC for two online businesses and cash and named former boss Greg Blatt CEO of IAC.

The Internet company's revenue and earnings rose, and the firm will start paying a quarterly dividend.

Barry Diller's IAC on Thursday reported much-improved third-quarter financials that exceeded Wall Street expectations and said it would start paying a quarterly dividend.

The Internet company posted earnings of $65.0 million, compared with $17.5 million in the year-ago period. Revenue rose 25 percent to $516.9 million.

The company said it is introducing a 12 cents per share quarterly dividend. “I think it’s an outdated and somewhat inane concept that high-growth companies shouldn’t pay dividends,” said IAC chairman Diller.  “We’ve been growing our earnings consistently, have substantially no debt, and large reserves of cash."

IAC's media & other unit, which includes Ben Silverman's next-generation production outfit Electus, CollegeHumor, Notional, as well as Vimeo, Pronto, Shoebuy, Proust and Hatch Labs, reported a quarterly revenue gain of 4 percent to $56.4 million driven by growth at Electus, CollegeHumor and others. Its loss expanded from $2.8 million to $3.7 million reflecting higher operating expenses at Electus and other factors. The year-ago operating included losses related to The Daily Beast, which, following the formation of a joint venture with Harman Newsweek in January, IAC now accounts for as an equity investment.


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