New IAC CEO Reveals Strategy
IAC/InterActiveCorp, a leading Internet company reaching more that 247 million people in over 30 countries—with websites including Match.com, Urbanspoon, and Citysearch—has reduced its capitalization by almost 50 percent since its last round of spin-offs in 2008.
With a billion dollars worth of cash on hand, the firm's new CEO is focused on stock buybacks to give shareholders the most value, as the most attractive opportunity of scale.
"We view buybacks and acquisitions under effectively the same lens, which is we evaluate potential against price and we will continue to do that," Greg Blatt, CEO of IAC/InterActiveCorp, who recently replaced Barry Diller, told CNBC's "The Strategy Session" on Tuesday.
But the new CEO admits the company "missed some things along the way" in terms of not doing as good a job as they might have assessing the potential of the company's various parts.
Right now, a huge generator of cash flow on the web right is the way people choose to decorate home pages or populate emails—using products such as emoticons, webfetti and virtual worlds.
"We've basically got an operation that has become incredibly good at developing these products and then distributing them across the web," Blatt said, "it's a very big part of our business."