IAC splitting into five companies Dec 1, 2007 12:00 PM
, Tim Parry/Jim Tierney
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IAC/InterActiveCorp, whose properties include HSN and the Cornerstone Brands catalogs, will spin itself off into five separate publicly traded companies. HSN and the Cornerstone books such as Ballard Designs, Frontgate, Garnet Hill, Isabella Bird, Smith + Noble, and TravelSmith, fall into a business that will be called IAC Retailing Now.
The group, which had been known as IAC's Retailing segment, will continue to be run by Mindy Grossman and will retain its St. Petersburg, FL-based headquarters. IAC two years ago bought Cornerstone Brands for $760 million. HSN Catalog Services, which consists of the Improvements and Alsto's home products catalogs, became part of Cornerstone Brands.
IAC says it wants to concentrate on its pure Internet units. One of those, footwear site Shoebuy.com, will remain a part of the existing IAC, along with units like Match.com, Ask.com, and Citysearch.
Some have speculated that IAC wants to sell HSN. But Lee Helman, managing director with New York-based investment bank Financo, thinks the move is a sign that HSN is not for sale, though IAC may receive some offer for it. “HSN represents roughly 75% to 80% of the retail revenue, so I would find it hard to believe that HSN will be sold now and Cornerstone would be left behind,” Helman says.
