February 7, 2018
Dear Shareholders,
Five weeks into a roaring 2018, we've got two hands gripped on the wheel and we've almost
forgotten 2017 in the rearview. But before we move on, some quick highlights:
·
Created a new public subsidiary (ANGI) that's the category leader in the $400 billion
domestic home services market ("unlocking" several billion dollars of value)
·
Outperformed the market by 4x over the past year and 2.5x since Barry Diller assumed
control in 1995, and also outperformed the market in each of the past 5, 10, and 20 year
periods by at least 2.5x
(1)
·
Lowered our cash cost of debt by approximately 200 basis points and extended maturities
in a market that has priced risk at historic lows
·
Promoted 4 new brand CEO's from within (always our preference)
We began 2017 with an implied value of IAC, excluding both the market value of our publicly
traded shares in Match Group (MTCH) and our cash net of our debt, of $1.6 billion, which at the
time included our share of what is now the publicly-traded ANGI Homeservices (ANGI) and our
other non-public subsidiaries. The value of that stake in ANGI is now $5.6 billion, while the
implied value of IAC corporate and the remaining non-public operating subsidiaries is now a
negative
$1.4 billion (reminder: those operating subsidiaries generated a
positive
$130 million of
cash flow last year). See table below.

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