Will HSN Be Ensnared in Liberty's Web?
Investors have applauded Diller's decision to break up IAC, which owns disparate businesses like HSN, Lending Tree, Ask.com, Citysearch and Match.com. That said, IAC's recent stock gains have been nearly erased by the overall retreat in the stock market this week. It remains unclear how Diller and Malone will resolve their interests in the company.
"It's ultimately going to depend on how IAC structures the spin, but it's an opportunity for the company to put their heads together and come up with a solution," says Shelton. "Liberty has this big IAC equity stake and they'd like to tax efficiently monetize that. The way to do that would be some sort of asset swap with IAC and something like that probably happens before the assets get spun off."
For his part, Roge doesn't see upside in Liberty's interactive holdings as a result of the restructuring. He says the home shopping business is a bad investment in the long run because the Internet will provide better ways for consumers to shop from home.
"It's profitable now, and if Malone thinks it'll be profitable in the future and there's global expansion opportunities, then so be it," says Roge. "I just tend to think it will be one of the mistakes in his legacy."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV