IAC and Liberty Lock Horns in Legal Battle

Fight over spinoffs that would reduce Liberty's control over IAC assets
By Laila Weir,  Newser User
Posted Jan 25, 2008 10:50 AM CST
IAC/InterActiveCorp. CEO Barry Diller is interviewed in his office at the company headquarters in New York in this June 27, 2005 file photo. (AP Photo/Gregory Bull, file)   (Associated Press)
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(Newser) – Media moguls Barry Diller and his onetime backer, John Malone, have gone head to head,  with each man’s corporation suing the other’s. Diller’s IAC/InterActiveCorp and Malone’s Liberty Media, which owns a majority voting stake in IAC, are at odds over an IAC restructuring plan that would reduce Liberty’s voting power over several key businesses, reports the Wall Street Journal.

IAC sued first for the right to spin off several major assets with a voting structure that would reduce Liberty’s power. Liberty countered with a suit seeking to block the plan, citing concerns about “performance and executive compensation" and accusing Diller of focusing on “succession issues and his legacy." The spinoffs would leave IAC with several Internet businesses, most notably Ask.com.