IAC

By Carlos Bonachea
IAC Logo

Courtesy of IAC Press Kit [1]

555 W. 18th St.
New York, NY 10011
Phone: 212-314-7300
Website: www.iac.com

Key Executives

Barry Diller - Chairman and Senior Executive, IAC & Chairman and Senior Executive, Expedia, Inc.Chairman and Senior Executive, IAC - Chairman and Senior Executive, Expedia, Inc.

Barry Diller – Chairman and Senior Executive, IAC & Chairman and Senior Executive, Expedia, Inc.
Courtesy of the official IAC website [2].

Executive Vice President and Chief Financial Officer Courtesy of the official IAC website

Jeff Kip – Executive Vice President and Chief Financial Officer
Courtesy of official IAC website [3].

Victor Kaufman – Vice Chairman, oversees all strategic planning, financial and legal matters.
Courtesy of official IAC website [4].

      IAC remains at the forefront of internet commerce, communication, and media by strategically managing the investment, acquisition, and sale of some of the worlds most innovative companies [5]. IAC began as Silver King Communications Inc., a television company led by Barry Diller, who previously was in charge of Fox Broadcasting as well as Paramount Pictures prior to that. [6]

      IAC now boasts over 1.3 billion total monthly visits amongst it’s network of sites and controls over 150 brands and products all at the cutting edge of web commerce and modern living. IAC has spawned six independent publicly traded companies – Expedia, TripAdvisor, HSN, Tree, Interval, and Live Nation (formerly Ticketmaster). Simply put IAC is the 9th largest network in the world and one of Fortune’s most admired companies in the internet services sector. [5] [7]

About_Overview_Nov2013

Some of the many brands owned by IAC.

Financials

From April 22 2013 to April 17, 2014 stock prices of IAC (IACI) have risen 55.2% from $44.25 a share to $68.67 a share, proving IAC’s value to it’s investors. [8]

2013 Q4 statements show that revenue for IAC is down 5% from 765.3M in Q4 2012, to 724.5M.

IAC Head Quarters in NYC Photo courtesy of Vimeo on Flickr.

IAC Head Quarters in NYC Photo courtesy of Vimeo on Flickr.

IAC saw a 48% adjusted EPS growth from 0.7 in Q4 2012 to 1.04 in Q4 2013.

IAC also has enjoyed and increase in adjusted net income of 38% from 66.2 in Q4 2012 to 91.1 in Q4 2013.

Thus IAC has now entered its 19th consecutive quarter of double-digit operating income before amortization growth.

Financial Statements courtesy of IAC’s public quarterly report [9].

Media

Logo courtesy of IAC official Profile

Logo courtesy of IAC official Profile

      Vimeo is one of IAC’s hottest commodities and a worthy innovator in the realm of web video and user generated content. Vimeo currently has over 100 million unique monthly users and over 22 million register users which provide content. Vimeo is known to be the best video player “in the galaxy” which attracts some of the best independent filmmakers. Though Vimeo is within the media branch of IAC which accounts for a relatively small portion of revenue compared to ‘web search and applications’ or the Match group the media prospects of IAC prove to be some of the most innovative. [11]

      As edea.cameo_transparentof March 18 2014, Vimeo has acquired ‘Cameo‘ a video making app which the leaders at Vimeo say is going to be independently run much like the recent acquisition of Echograph about a year prior. This is very much inline with the philosophy of supporting new ideas which is so close to the core idealsCH-Logo-300x186_black of IAC. [10]
Another company in the Media branch is CollegeHumor which, thought it does not directly create a majority portion of IAC’s revenue, it has a huge impact in pop culture and the multimedia habits of the 18-14 demographic. It draws over 100 million monthly video views and the number 9 most subscribed to channel on youtube. [12]

Match

      The Match group of IAC is comprised of all the the websites and brands which deal Match_logo_300x186with dating and matching people together. Match.com being the primary website but also including many other brands. Meetic, the European leader in online dating, Chemistry.com, okcupid, and tinder. There are also some brands which specialize in helping advertisers find their audience.
Match.com recently made an exclusive MLBpartnership with Major League Baseball to further find matches based on team preferences. This joint effort can mean serious revenue for the Match group in future quarters. [13]
IAC in an effort to restructure some of the company for unknown reasons recognized Greg Blatt as the new Chairman of the newly created Match Group, on the Board of directors as of December 19 2013. This strategic moves serves as an indicator of the companies success in the Match department.

IAC thus far has proven to be a very innovative company which has harnessed the reach of its network to self facilitate more growth across company and brand lines. This innovative approach is reshaping not only pop-culture and the way we access media but the daily lives of the average person. IAC will continue to shape the way the internet does business and the way people interact. With projected financial statement the decrease in operating costs will lead to a great deal of profit in the following quarters which will more than likely prompt another large media acquisition given the highly increased capital which IAC now has.

Sources

[1] IAC Online Press Kit RET: 4/13/2014

[2] Official IAC Website– Bio Page on Barry Diller – Photo credit: Michele Asselin RET: 4/13/2014

[3] Official IAC Website– Bio Page on Jeff Kip RET: 4/13/2014

[4] Official IAC Website– Bio Page on Victor Kaufman RET: 4/13/2014

[5] Official IAC Website– Overview of Brands RET: 4/14/2014

[6] Official IAC Website– Timeline of company progress, acquisitions and sales RET: 4/15/2014

[7] CNN Money– IAC’s ranking as one of the world’s most admired companies by Fortune RET: 4/15/2014

[8] Google Finance– IAC share value from 4/22/13 – 4/17/14 RET: 4/15/14

[9] IAC public quarterly report– RET: 4/15/2013

[10] Re/Code– Article by Peter Kafka on the aquisition of Cameo by IAC’s media company Vimeo; published March 18 2014; RET: 4/11/2014

[11] Official IAC Website– Vimeo brand profile and overview RET: 4/13/14

[12] USA Today– Match.com partnership with MLB RET: 4/14/14

Scripps Networks Interactive

By Alexa Sternschein
scripps-networks-interactive-inc-logo

This photo is curtesy of wkrb13 (1)

Scripps Network Interactive is a cable network that specializes in life-style oriented content.  They’re main brands include HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel, and Great American Country.  They’re company is based on delivering content and products related to the home and food.  The shows that are aired are all about inspiring their viewers to live a better lifestyle, whether it’s through home improvement or new recipes try to here and there.  If you click on the image below, it will lead you to Scripps Networks Interactive’s 2013 upfront video. (2)

Poster-LG-SNI-Sizzle

 

 

Key Executives (3)

           Ken Lowe Headshot th                                                        Joe NeCastro Headshot th

         Kenneth W. Lowe                                                   Joseph G. Necastro

      Chairman of the Board,                                             Chief Financial and

President and Chief Executive Officer                            Administrative Officer

           Burton Jablin                                                        Thmb-Leader-Henry-Ahn

          Burton Jablon                                                              Henry Ahn

           President,                                                          Executive Vice President

       Scripps Network                               Corporate Controller and Emerging Business CFO

History 

Scripps Network Interactive was founded in 1878 by Edward W. Scripps.  It started as a newspaper publishing company after he founded The Penny Press in Cleveland.  During the post-war era it started to build its reputation as a leading local television operator.  HGTV was the first television network to be developed by Scripps Network Interactive.  After that the Food Network, DIY Network, and Fine Living Network.  Scripps also added Great American Country and the Travel Channel to its portfolio later on.

 In 2007 the company split into two publicly traded companies.  One side focused on the growing national television lifestyle brands and global Internet services.  The other side focused on relevant, innovative and enduring local media business. (4)

Financials

Revenue:  $594 Million

Operating Income: $219 Million

Costs of services before Interest, Taxes, Depreciation, and Amortization: $163 Million

The figures above are the 2013 first quarter results.  The company is currently in its third quarter but the second quarter results have not been made public yet.  Compared to 2012, there was a major increase for all three categories in the first quarter of 2013.  Revenue increased 11% from $535 million in 2012 to $594 million in 2013.  Operating income increased 2.4% from $214 million in 2012 to $219 million in 2013.  Costs of services before interest, taxes, depreciation, and amortization unfortunately also increased by 18.8% from $137 million in 2012 to $167 million in 2013.  Overall Scripps Networks Interactive is showing great improvement from 2012 to 2013. (5)

Networks

logo_brand_hgtv

HGTV consists of home and lifestyle programming.  It was the first brand to be part of the Scripps Networks Interactive portfolio and it was created in 1994.(6)  Most of the shows on HGTV are about home decorating such as 24 Hour Design, 25 Biggest Renovating Mistakes, and Behind the Build: HGTV Dream Home.  With the holidays around the corner, they are also doing a lot of holiday specials, such as Celebrity Holiday Homes and 25 Great Holiday Ideas.(7) 

logo_brand_food

Food Network consists of new, interesting, and creative ways to approach food.  It is not only “how to” cooking shows, there are also competitions and travel shows.  It keeps food relevant.  Food Network was introduced in 1997. (6)  You can find shows such as Diners, Drive Ins, and Dives, Chopped, and 30 Minute Meals. (8)

logo_brand_diy

DIY Network consists of Home Improvement shows.  These are the shows you watch when you want to learn how to get your hands dirty and really improve your house yourself and not just decorate it.  DIY Network was added to the Scripps Network Interactive portfolio in  1999. (6)  Some of the shows that you will find on this channel are House Crashers and I Hate My Bath. (9)

logo_brand_cooking

The Cooking Channel is sort of an extension of Food Network.  Food Network is a network that consists or television programming and websites.  The Cooking Channel is the actual channel that provides the Food Network Programming. (6)

logo_brand_gac

Great American Country celebrates American culture through music, food, family, home and travel.  It was added to the Scripps Networks Interactive portfolio in 2004.(6)  Some of it’s shows are Top 20 Country Countdown, Celebrity Motor Homes, and Made in America. (10)

logo_brand_travel

The Travel Channel consists of programming exclusively devoted to travel entertainment.  It helps people explore the world without leaving their couch, but it also helps them plan a trip if they want to get out there and explore.  Scripps acquired the Travel Channel in 2009. (6)  It consists of shows such as Bizarre Foods, Baggage Battles, and The Dead Files. (11)

What’s Happening Now

Scripps Networks Interactive has accomplished many things in 2013 and has a lot coming up in the year 2014.  According to the CEO, Kenneth Lowe, the lifestyle programming that is offered by Scripps Networks Interactive is very similar to sports because it is usually viewed live.  Scripps emphasizes immediacy and because of this most of the advertising is C3 advertising.  However, lately there has been a large viewing through DVR on Sunday nights, so there might be a slight shift to C7 advertising.  “So, I think it’s good for the industry … that we’re moving to C7 for sure,” said Lowe. (12)

In order to keep up with the large live viewership of the Scripps audience, Scripps Networks Interactive has recently released a new lifestyle video site and distribution platform called ulive.  Ulive will provide videos from each Scripps brand along with over 70 original series. (13)  Ulive is almost like another brand added to the Scripps portfolio that offers all the old existing shows along with new shows and series.  Because of the holiday season, a lot of the new shows on ulive are holiday specials such as Holiday Hangups. (14)

In other news, Scripps Networks Interactive was recently in the midst of making a deal with Chellomedia BV.  The two parties unfortunately could not agree on a deal and Chellomedia was sold to AMC Inc instead.  The thought process behind this attempted deal was that Scripps is trying to “bring in the minority interests of both Food Network and Travel Channel.”  The company is still in the process of deciding what to do with its cash reserves for now. (15)

Expanding Their Borders

Scripps Networks International has just recently launched Food Network and the Travel channel in Croatia.  Programming will be available through two channels owned by Vipnet. The two channels will be available in standard definition.  Travel Channel is fully localized and Food Network will be fully localized by 2014. (16)  Scripps Networks International is currently available in 170 countries around the globe.  Scripps also owns 50% interest in UKTV. (17)

New President

Scripps Networks Interactive’s president of it’s operating division, John Lansing, is retiring.  After nine years with the company, Lansing is finally stepping down and Burton Jablin, the president of the home category division, will be stepping up and taking his place.  Alongside him will be Kathleen Finch, senior vice president and general manager of HGTV and DIY Network.  Finch and Jablin will be splitting Lansing’s original role in the company. (18)

Post-Thanksgiving Live!

With Thanksgiving around the corner, all of the Scripps networks are doing holiday specials.  Food Network in particular is taking part in holiday fun.  Food Network is conducting a Google+ Hangout on Saturday, November 23rd at 2pm.  It will be an interactive, Thanksgiving themed “hangout” with chefs such as Bobby Flay, Giada De Laurentiis, Alton Brown, and Ina Garten and they will discuss post-Thanksgiving leftovers and food advice.  It can be viewed at FoodNetwork.com/ThanksgivingHangout. (19)

Sources

  1. WKRB13
  2. Scripps Networks Interactive Company
  3. Scripps Networks Interactive Leaders
  4. Scripps Networks Interactive History
  5. Financials
  6. Scripps Networks Interactive Our Brands
  7. HGTV
  8. Food Network
  9. DIY Network
  10. Great American Country
  11. Travel Channel
  12. James, S. B. (n.d.). Scripps CEO: Like sports, lifestyle programming best watched live.
  13. Cabanilla, I. R. (n.d.). Scripps Networks unveils online video site. SNL Kagan.Ulive
  14. Ulive
  15. James, S. B. (n.d.). Scripps CFO: We would not pay what Chellomedia was asking. SNL Kagan.
  16. Cabanilla, I. R. (n.d.). Scripps launches Food Network, Travel Channel in Croatia. SNL Kagan.
  17. http://scfp.mobmedia.com/category2.aspx?code=04
  18. Ilas, M. (n.d.). Scripps Networks television unit loses president, names replacement. SNL Kagan.
  19. Food Network Thanksgiving Live 
  20. Scripps Networks Interactive