IAC-Liberty deal paves way for HSN to go solo

By Mark Albright, Times Staff Writer
In print: Wednesday, May 14, 2008

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ADVERTISEMENT Barry Diller prevailed in a Delaware lawsuit and now has struck a truce with Liberty Media Corp.

Barry Diller's IAC/InterActiveCorp and John Malone's Liberty Media Corp. have struck a truce, clearing the path for St. Petersburg-based HSN to be spun off this summer on its own as a publicly traded stock.

The deal, ratified by the boards of both companies, sets the stage for the breakup of Diller's empire into five pieces, with Liberty maintaining a big — but not controlling — stake in four of them, including HSN.

The deal gives Liberty, which once owned HSN outright, board representation in the new HSN equal to its 30 percent stake in the TV shopping network. Liberty, which also owns QVC, also agreed to a phased schedule of increasing stake in HSN if it chooses to acquire more shares. Liberty executives have turned lukewarm about pursuing a TV shopping network merger, saying they see little added efficiency or cost saving by combining the two largest TV shopping networks.

Diller is free to spin off Ticketmaster, LendingTree and Interval International, a Miami time-share exchange. He will only play a role in Ticketmaster and concentrate his ownership in the IAC remains, including Ask.com.

Diller and Malone once envisioned Liberty taking over all of HSN as a way for the two dealmakers to part company after 13 years. Talks fell apart over price, then deteriorated into charges of corporate betrayal. That triggered a messy lawsuit in Delaware, where Diller prevailed.

Mark Albright can be reached at albright@sptimes.com or

(727) 893-8252.