WASHINGTON, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 8, 2005
IAC/INTERACTIVECORP
(Exact name of Registrant as specified in charter)
Delaware |
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0-20570 |
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59-2712887 |
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(State or other jurisdiction |
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(Commission File |
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(IRS Employer |
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of incorporation) |
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Number) |
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Identification No.) |
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152 West 57th Street, New York, NY |
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10019 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrants telephone number, including area code:
(212) 314-7300
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
ý Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
ý Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 REGULATION FD DISCLOSURE
On June 8, 2005, the Registrants Executive Vice President and Chief Financial Officer gave a presentation at the Deutsche Bank Media Conference. This presentation, which appears in Exhibit 99.1 hereto, is being furnished by the Registrant pursuant to Regulation FD.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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IAC/INTERACTIVECORP |
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By: |
/s/ Gregory R. Blatt |
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Name: |
Gregory R. Blatt |
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Title: |
Executive Vice President and |
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Date: June 8, 2005 |
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3
Exhibit 99.1
IAC/InterActiveCorp
Thomas J. McInerney
Executive Vice President & CFO
Deutsche Bank Media Conference
June 8, 2005
IACs
strategy is to create, acquire and build businesses with
leading positions in interactive markets.
Retailing |
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[HSN.com, Americas Store, Cornerstone Brands and HSE 24 logos] |
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59 million units sold |
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Services |
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[Ticketmaster, RealEstate.com, LendingTree, PRC and ServiceMagic logos] |
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105 million units sold |
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Membership & Subscriptions |
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[Match.com, Interval International and Entertainment Publications logos] |
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11 million members |
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Media & Advertising |
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[AskJeeves, Citysearch and Evite logos] |
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52 million unique users |
IACs operations encompass
multiple brands in broad segments where interactivity
is fostering change and creating opportunity.
IAC/InterActiveCorp |
Retailing units: HSN worldwide 04 + Cornerstone fiscal YE 1/31/05. Services units: tickets 04 + LendingTree transactions 04. Members: Match paid subscribers @ 12/31 + Interval members @ 12/31 + est. EPI books sold 04. Media users: Ask Jeeves, Citysearch and Evite unique users undupe (source: comScore). |
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$ in millions
[Bar graph showing New IAC revenues for 2003 ($3,832), 2004 ($4,206), Q1 04 ($1,023) and Q1 05 ($1,165) and related year-over-year (+10%) and quarter-over-quarter changes (+14%)] |
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[Bar graph showing New IAC Operating Income Before Amoritzation for 2003 ($375), 2004 ($437), Q1 04 ($93) and Q1 05 ($118) and related year-over-year (+17%) and quarter-over-quarter changes (+27%)] |
Not pro forma for Ask Jeeves (deal pending) and Cornerstone (acquired 4/1/05).
IAC/InterActiveCorp |
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3
Advantage |
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Specifics |
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Example |
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Experience & Long Term Philosophy |
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Strategic focus
Competitive differentiation |
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[Citysearch logo] |
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Strong Brands |
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Leading franchise names
Proven track record |
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[LendingTree logo] |
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Great Consumer Experiences |
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Outstanding websites
Excellent customer service |
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[HSN.com logo] |
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Innovative Products & Services |
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New ideas for same infrastructure
Shared technology & knowledge |
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[Entertainment publications logo] |
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Strategic Acqusitions |
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Strengthen market position
Financially attractive |
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[Ticketmaster logo] |
IAC/InterActiveCorp |
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4
Retailing |
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[HSN.com, Americas Store, Cornerstone Brands and HSE 24 logos] |
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Execute multi-channel strategies
Invest in new technologies |
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Services |
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[Ticketmaster, RealEstate.com, LendingTree, PRC and ServiceMagic logos] |
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Aggregate demand and supply
Offer value-added services |
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Membership & Subscriptions |
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[Match.com, Interval International and Entertaiment Publications logos] |
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Cultivate loyalty & deliver value
Cross-sell to member base |
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Media & Advertising |
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[AskJeeves, Citysearch and Evite logos] |
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Gain share; best local experience
Develop transactional search |
IAC/InterActiveCorp |
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5
Retailing: InteractiveU.S. |
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[HSN.com Logo] |
$ in billions for 2004 |
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Television |
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Internet |
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[Pie chart showing the respective shares of the $7 billion market of the following retailers: QVC ($4.0 billion), HSN ($1.9 billion), ShopNBC ($0.7 billion), Shop-At-Home ($0.3 billion) and Other ($0.3 billion)] |
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[Pie chart showing the respective shares of the $79 billion market of the following retailers: Other ($32.4 billion), Store chains ($16.5 billion), Pure Internet ($10.9 billion), Manufacturers ($9.1 billion), Catalog ($5.6 billion), Other TV.com ($0.9 billion) and HSN brands ($0.5 billion)] |
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HSN Share 27% |
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HSN Share 0.7% |
IAC/InterActiveCorp |
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TV data is estimated per SEC filings. Internet market size is per Forrester (8/04); channel sizes estimated by management based on 2003 data per The Internet Retailer. |
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Retailing: Cross-Channel Strategies
TV Only Customers |
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Multi Channel Customers |
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Web Only Customers |
~$300/yr à |
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~$900/yr |
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ß ~$190/yr |
Cross promotion to web
Increase non-linear spending
Higher product velocity
Verbal, pictorial and graphic tools |
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Previews
Recaps/show reviews
Tune in messaging on site and through e-mail |
IAC/InterActiveCorp |
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Services: Mortgage Opportunity |
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[LendingTree Logo] |
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[Pie chart showing the respective shares of ~50,000 institutions (and certain subgroups thereof) in the $2.6 trillion (2004) fragmented origination market: LendingTree ($21.2 billion), Top 15 Retail Producers ($901 billion (31%)), 10,000 Small/Medium Lenders ($281 billion (10%)) and 40,000 Mortgage Brokers/Correspondents ($1,670 billion (59%))] |
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[Line graph showing the approximate growth in LendingTrees percentage share of the fragmented origination market from 1999 to 2004 (disclosing an approximate 0.8% share in 2004)] |
IAC/InterActiveCorp |
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Source: Inside Mortgage Finance (February 18, 2005), MBAA (June 6, 2005) |
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Services: Lending Value Chain |
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[LendingTree Logo] |
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Substantially higher revenue and earnings by taking on a few additional steps in process.
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Lender Network |
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LendingTree |
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LTSS |
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Wholesale |
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Exchange |
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Lead |
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Sales/Lock |
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Application |
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Processing |
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Funding/Closing/ |
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Servicing |
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LendingTree |
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LTSS |
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Wholesale |
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w/LT |
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Lead |
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Sales/Lock |
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Application |
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Processing |
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Funding/Closing/ |
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Servicing |
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IAC/InterActiveCorp |
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Services: Real Estate Differentiation |
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[RealEstate.com Logo] |
Inventing a Better Way Creating the premier destination for buying and selling a home.
Home |
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Buy a |
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Sell a |
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Refinance |
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Home |
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About Us |
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Your |
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1-800- |
782 |
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8,096 |
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685 |
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249 |
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1.2 million |
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$1,000 Rebate |
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Agents Compete |
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1% Rebate |
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Banks Compete |
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live home
listings |
Services: appraisal, title, closing, and settlement
IAC/InterActiveCorp |
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Services: Sell MoreTickets, Better |
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[Ticketmaster Logo] |
$ in millions |
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[Bar graph showing ticketing OIBA 2002 ($119), 2003 ($145) and 2004 ($164) and the CAGR of +17% (for the period from 2002 to 2004 )]
Initiative |
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Q1 04 |
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Q1 05 |
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Ticketmaster Alerts |
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126 mm |
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190 mm |
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ticketFast % |
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12% |
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17% |
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TeamExchange teams |
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20 |
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28 |
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# auctions |
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7 |
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172 |
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IAC/InterActiveCorp |
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Membership: Recurring Revenues |
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[Interval International Logo] |
2,000+ Properties ß à [Interval International Logo] ß à 1.7 million members
[Bar
graph showing members (in 000s) in 2003 |
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[Bar
graph showing the percentage of confirmations |
IAC/InterActiveCorp |
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Media: Ask Jeeves Share U.S. |
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[Ask Jeeves Logo] |
Ask Jeeves acquisition is pending |
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[Bar graph showing the respective percentage shares of each of Google (35.9% & 36.4%), Yahoo! (30.0% & 30.6%), MSN (15.7% & 16.5%), AOL (13.4% & 8.9%) and Ask Jeeves (1.8% & 5.5%) of the search market as of March 2004 and March 2005, respectively.]
IAC/InterActiveCorp |
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Source: ComScore qSearch, March 2005. 3/04 comScore numbers do not include ISH properties. |
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Media: Ask Jeeves Integration w/IAC |
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[Ask Jeeves Logo] |
Ask Jeeves acquisition is pending |
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First 100 Days Plan |
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Goals |
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Description |
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1. Increase share |
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Add search box to IAC sites |
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Sign more distribution partners |
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2. Create best local search engine |
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Integrate local content and merchants |
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3. Complete Travel deal |
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Distribute search on Expedia |
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Integrate Expedia content on Ask Jeeves |
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4. Branding |
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Investment in marketing |
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5. Feature differentiation |
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Investment in technology and team |
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Refine product roadmap for differentiation |
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IAC/InterActiveCorp |
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Example: Local Content with Search |
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[Ask Jeeves Logo] |
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[Sample Ask Search results, based on a search for New York restaurants, which generated rich Citysearch local content (New & Notable, CS Featured, Top Searches and Editors Picks) and Ask sponsored and algorithmic search results.]
IAC/InterActiveCorp |
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Example: Transactional Search |
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[Ask Jeeves Logo] |
[Sample Ask Search results, based on a search for Prince tickets, which generated Ticketmaster content and transactions (General, link to fan website, buy tickets) and Ask news and sponsored and algorithmic search results.]
IAC/InterActiveCorp |
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Sale of VUE Securities
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$ in billions |
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Cash received |
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1.9 |
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56.6mm IAC shares retired @ FMV |
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1.4 |
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Media credits on NBC-U over 3 yrs |
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0.1 |
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Total consideration |
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$ |
3.4 |
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Estimated tax impact |
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(0.9 |
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Net value |
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$ |
2.5 |
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IAC/InterActiveCorp |
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Important Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to anticipated financial performance, business prospects, new developments, pending transactions and similar matters, and/or statements that use words such as anticipates, estimates, expects, intends, believes and similar expressions. These forward-looking statements are necessarily estimates reflecting the best judgment of IACs senior management, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties are described in IACs and Ask Jeeves filings with the U.S. Securities and Exchange Commission (the SEC), including their respective Annual Reports on Form 10-K for the fiscal year ended 2004, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on IACs future results, performance or achievements. In light of these risks and uncertainties, the forward-looking events discussed in this presentation may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this presentation.
IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this presentation to reflect circumstances existing after the date of this presentation or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
Additional Information
In connection with the proposed spin-off, IAC has filed a preliminary proxy statement/prospectus with the SEC. Stockholders of IAC are urged to read the definitive proxy statement/prospectus, when it becomes available, because it will contain important information about IAC, the proposed spin-off transaction and related matters. Investors and security holders can obtain free copies of the definitive proxy statement/prospectus when it becomes available by contacting Investor Relations, IAC/InterActiveCorp, Carnegie Hall Tower, 152 W. 57th Street, 42nd Floor, New York, NY 10019 (Telephone: (212) 314-7400). Investors and security holders can also obtain free copies of the proxy statement/prospectus and other documents filed by IAC and Expedia with the SEC in connection with the proposed spin-off transaction at the SECs web site at www.sec.gov. In addition to the proxy statement, IAC files annual, quarterly and current reports, proxy statements and other information with the SEC, each of which should be available at the SECs web site at www.sec.gov. You may also read and copy any reports, statements and other information filed by IAC at the SEC public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information. IAC and its directors, executive officers and certain members of management and other employees may be deemed to be participants in the solicitation of proxies of IACs stockholders to approve the proposed spin-off transaction. Such individuals may have interests in the transaction as described herein, including as a result of current holdings of options or shares of IACs stock and future holdings of options or shares of Expedias stock, which will be impacted in the transaction. Information regarding IAC and the equity interests of its directors and officers who may be deemed to be participants in the solicitation of proxies is contained in IACs preliminary proxy statement/prospectus, filed with the SEC on April 25, 2005.
In connection with its previously announced, pending acquisition of Ask Jeeves, Inc. (Ask Jeeves), IAC has filed a registration statement with the SEC that includes a preliminary combined proxy statement/prospectus of Ask Jeeves and IAC and other relevant documents. Ask Jeeves stockholders should read the definitive proxy statement/prospectus and other relevant materials when they become available, because they will contain important information about Ask Jeeves, IAC and the proposed merger. In addition to the documents described above, Ask Jeeves and IAC file annual, quarterly and current reports, proxy statements and other information with the SEC. The proxy statement/prospectus and other relevant materials (when they become available), and any other documents filed with the SEC by Ask Jeeves or IAC are available without charge at the SECs website at www.sec.gov, or from the companies websites, at www.ask.com and www.iac.com, respectively. Ask Jeeves, IAC and their respective officers and directors may be deemed to be participants in the solicitation of proxies from Ask Jeeves stockholders in connection with the proposed merger. A description of certain interests of the directors and executive officers of Ask Jeeves and a description of certain interests of the directors and executive officers of IAC is set forth in the preliminary combined proxy statement/prospectus, which was filed with the SEC on April 26, 2005. Additional information regarding the interests of such potential participants will be included in the definitive proxy statement/prospectus and other relevant documents to be filed with the SEC in connection with the proposed merger.
IAC/InterActiveCorp |
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IAC/InterActiveCorp