IAC Is Basically A Private Equity Fund

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As IAC’s core business continues to flounder, the company is “effectively now a private equity fund,” Bernstein analyst Jeff Lindsay argues in a note following IAC’s (IACI) earnings report yesterday.

Nice way to put it. Lindsay values IAC at $15/share: $13/share in cash with $2/share of mediocre Internet businesses attached.

So what’s Barry Diller going to buy with his $2 billion in cash? The first step could be picking up Yahoo’s (YHOO) dating business. Piper Jaffray’s Gene Munster estimates that could be worth about $500 million, via the WSJ.

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