UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

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

 

0-20570

 

59-2712887

(State or other jurisdiction

 

(Commission File

 

(IRS Employer

of incorporation)

 

Number)

 

Identification No.)

 

 

 

 

 

152 West 57th Street, New York, NY

 

10019

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s 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 Registrant’s 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

 

2



 

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.

 

 

IAC/INTERACTIVECORP

 

 

 

 

 

By:

/s/ Gregory R. Blatt

 

 

Name:

Gregory R. Blatt

 

Title:

Executive Vice President and
General Counsel

 

Date: June 8, 2005

 

3


 

Exhibit 99.1

 

 

 

 

 

 

 

 

IAC/InterActiveCorp

 

Thomas J. McInerney

Executive Vice President & CFO

 

Deutsche Bank Media Conference

June 8, 2005

 



 

Overview

 

IAC’s strategy is to create, acquire and build businesses with
leading positions in interactive markets.

 

Retailing

 

[HSN.com, America’s Store, Cornerstone Brands and HSE 24 logos]

 

59 million units sold

 

 

 

 

 

Services

 

[Ticketmaster, RealEstate.com, LendingTree, PRC and ServiceMagic logos]

 

105 million units sold

 

 

 

 

 

Membership & Subscriptions

 

[Match.com, Interval International and Entertainment Publications logos]

 

11 million members

 

 

 

 

 

Media & Advertising

 

[AskJeeves, Citysearch and Evite logos]

 

52 million unique users

 

 

IAC’s operations encompass multiple brands in broad segments where interactivity
is fostering change and creating opportunity.

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

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).

 

2



 

New IAC

$ 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%)]

 

[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
Prepared June 7, 2005

 

 

3



 

Unique Advantages

 

Advantage

 

Specifics

 

Example

 

 

 

 

 

Experience & Long Term Philosophy

 

        Strategic focus 

 

        Competitive differentiation

 

[Citysearch logo]

 

 

 

 

 

Strong Brands

 

        Leading franchise names 

 

•  Proven track record

 

[LendingTree logo]

 

 

 

 

 

Great Consumer Experiences

 

        Outstanding websites 

 

        Excellent customer service

 

[HSN.com logo]

 

 

 

 

 

Innovative Products & Services

 

        New ideas for same infrastructure 

 

        Shared technology & knowledge

 

[Entertainment publications logo]

 

 

 

 

 

Strategic Acqusitions

 

        Strengthen market position 

 

        Financially attractive

 

[Ticketmaster logo]

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

4



 

Growth Opportunities

 

Retailing

 

[HSN.com, America’s Store,

Cornerstone Brands and HSE 24 logos]

 

        Execute multi-channel strategies

 

        Invest in new technologies

 

 

 

 

 

Services

 

[Ticketmaster, RealEstate.com,

LendingTree, PRC and ServiceMagic logos]

 

        Aggregate demand and supply

 

        Offer value-added services

 

 

 

 

 

Membership & Subscriptions

 

[Match.com, Interval International

and Entertaiment Publications logos]

 

        Cultivate loyalty & deliver value

 

        Cross-sell to member base

 

 

 

 

 

Media & Advertising

 

[AskJeeves, Citysearch and Evite logos]

 

•  Gain share; best local experience

 

        Develop transactional search

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

5



 

Retailing: Interactive—U.S.

 

[HSN.com Logo]

$ in billions for 2004

 

 

 

 

Television
$7 Billion
6-10% growth

 

Internet
$79 Billion
25-30% growth

 

 

 

[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)]

 

[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)]

 

 

 

HSN Share 27%

 

HSN Share 0.7%

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

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.

 

6



 

Retailing: Cross-Channel Strategies

 

TV Only Customers

 

Multi Channel Customers

 

Web Only Customers

~$300/yr à

 

~$900/yr

 

ß ~$190/yr

        Cross promotion to web

 

        Increase non-linear spending

 

        Higher product velocity

 

        Verbal, pictorial and graphic tools

 

 

 

        Previews 

 

•  Recaps/show reviews

 

        Tune in messaging on site and through e-mail

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

 

7



 

Services: Mortgage Opportunity

 

[LendingTree Logo]

 

 

 

 

[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%))]

 

[Line graph showing the approximate growth in LendingTree’s percentage share of the fragmented origination market from 1999 to 2004 (disclosing an approximate 0.8% share in 2004)]

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

Source: Inside Mortgage Finance (February 18, 2005), MBAA (June 6, 2005)

 

8



 

Services: Lending Value Chain

 

[LendingTree Logo]

 

 

 

 

Substantially higher revenue and earnings by taking on a few additional steps in process.

 

 

 

 

Lender Network

 

 

 

LendingTree

 

 

 

LTSS

 

Wholesale
Lender

 

Exchange

 

Lead
Generation

 

Sales/Lock

 

Application

 

Processing
/Underwriting

 

Funding/Closing/
Escrow

 

Servicing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LendingTree

 

LTSS

 

Wholesale
Lender

 

w/LT
Loans

 

Lead
Generation

 

Sales/Lock

 

Application

 

Processing
/Underwriting

 

Funding/Closing/
Escrow

 

Servicing

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

9



 

Services: Real Estate Differentiation

 

[RealEstate.com Logo]

 

 

“Inventing a Better Way” – Creating the premier destination for buying and selling a home.

 

Home

 

Buy a
Home

 

Sell a
Home

 

Refinance

 

Home
Equity

 

About Us

 

Your
Account

 

1-800-
RealEstate

 

782
Brokers

 

8,096
Agents

 

685
Builders

 

249
Lenders

 

1.2 million

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1,000 Rebate

 

Agents Compete

 

1% Rebate

 

Banks Compete

 

live home listings
available

 

Services: appraisal, title, closing, and settlement

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

10



 

Services: “Sell MoreTickets, Better”

 

[Ticketmaster Logo]

$ in millions

 

 

 

[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

 

Q1 04

 

Q1 05

 

Ticketmaster Alerts

 

126 mm

 

190 mm

 

ticketFast %

 

12%

 

17%

 

TeamExchange teams

 

20

 

28

 

# auctions

 

7

 

172

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

11



 

Membership: Recurring Revenues

 

[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
(1,594), 2004 (1,696) and Q1 05 (1,717)]

 

[Bar graph showing the percentage of confirmations
effected online in 2003 (14.4%), 2004 (18.5%) and
Q1 05 (21.0%)]

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

12



 

Media: Ask Jeeves Share U.S.

 

[Ask Jeeves Logo]

Ask Jeeves acquisition is pending

 

 

 

[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
Prepared June 7, 2005

 

Source: ComScore qSearch, March 2005. 3/04 comScore numbers do not include ISH properties.

 

13



 

Media: Ask Jeeves Integration w/IAC

 

[Ask Jeeves Logo]

Ask Jeeves acquisition is pending

 

 

“First 100 Days” Plan

 

 

 

Goals

 

Description

 

1. Increase share

 

•  Add search box to IAC sites

 

 

 

•  Sign more distribution partners

 

2. Create best local search engine

 

•  Integrate local content and merchants

 

3. Complete Travel deal

 

•  Distribute search on Expedia

 

 

 

•  Integrate Expedia content on Ask Jeeves

 

4. Branding

 

•  Investment in marketing

 

5. Feature differentiation

 

•  Investment in technology and team

 

 

 

•  Refine product roadmap for differentiation

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

14



 

Example: Local Content with Search

 

[Ask Jeeves Logo]

 

 

 

 

[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
Prepared June 7, 2005

 

 

15



 

Example: Transactional Search

 

[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
Prepared June 7, 2005

 

 

16



 

Sale of VUE Securities

 

 

 

$ in billions

 

Cash received

 

$

1.9

 

56.6mm IAC shares retired @ FMV

 

1.4

 

Media credits on NBC-U over 3 yrs

 

0.1

 

Total consideration

 

$

3.4

 

Estimated tax impact

 

(0.9

)

Net value

 

$

2.5

 

 

IAC/InterActiveCorp
Prepared June 7, 2005

 

 

17



 

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 IAC’s 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 IAC’s 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 IAC’s 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 SEC’s 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 SEC’s 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 IAC’s 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 IAC’s stock and future holdings of options or shares of Expedia’s 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 IAC’s 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 SEC’s 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
Prepared June 7, 2005

 

 

18



 

 

IAC/InterActiveCorp