The breakup of
was overdue, Jim Cramer told viewers in a TheStreet.com Wall St. Confidential Web video Monday.
The company's five components -- Ask.com, Match.com, Ticketmaster, the Home Shopping Network and Lending Tree -- never belonged together, Cramer said.
"Barry Diller trumpeted for years that all these pieces belong together ... and they didn't," Cramer said. He speculated that IACI president and COO Doug Lebda encouraged Diller to break up the company.
Because of Diller's "charmed existence on Wall Street," many investors had assumed that, in grouping IACI's disparate elements together, Diller was playing an angle no one else could see, Cramer said. The breakup of his company signals the end of that way of thinking.
Cramer: IACI Does the Right Thing
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"I think the parts are worth more than the whole," Cramer said. "They have so many second-rate properties, that it really is rather remarkable that they got any due at all."
Some pieces are better than others, Cramer added. For the moment, however, Wall Street will likely remain skeptical of the company's potential, as investors have gotten "kind of tired of
IACI missing the quarter over and over."
"My bet is that Ask.com will be perceived as the winner, the part you want to own. ... Other parts, I think Home Shopping, no one wants."
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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