John Malone has launched the first volley in his court battle with fellow media baron Barry Diller over control of IAC/InterActiveCorp. Malone testified today that the proposed restructuring of IAC breaks a longstanding agreement between the two, the Wall Street Journal reports. "It's a breach of the stewardship that we granted him when we started this whole relationship,'' said Malone.
At issue is whether Diller has the right to spin off new companies from IAC in a way that would cut the voting power of Malone's Liberty Media Corporation in half. Malone criticized the way Diller managed the business, saying that although he was "extremely well compensated," he had turned use of the company jet into "a fine art."