John Malone’s Liberty Media sued IAC and chairman Barry Diller (SA 100 #2) to block the planned break-up of the company into five separately-traded public entities. The WSJ says Diller’s plan proposes ditching IAC’s dual-class share structure for the four new companies, effectively reducing Liberty’s voting stake in them from 61.7% to 29.9%.
Liberty holds a 30% stake in IAC but has nearly 62% voting power through super-voting shares. Diller holds a proxy to vote those shares for IAC as long as he remains CEO. Malone wants the same structure over the spun-out companies, and could challenge Diller’s right to vote those shares.
Lehman Brothers’ Doug Anmuth (via PaidContent) says he believes Malone “will vigorously oppose Mr. Diller’s claim that he can vote Liberty’s shares, against Liberty’s wishes, to approve a one-vote structure for IAC’s post-spin entities.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.