IAC/InteractiveCorp (NASDAQ:IACI) CEO Barry Diller is bullish on content production for the growing Internet and traditional broadcast television models. The brash executive is so excited about the area that he sees his firm getting more for less, saying he's willing to spend less than 10% of his company's $1.8 billion in cash reserves on deals for content production companies.
Diller's ambition to make small deals in content production companies was overshadowed Tuesday by his other announcement that he was willing to part ways with struggling search engine Ask.com.
Already IAC is seeing some gains from CollegeHumor.com, which it acquired in 2006. Content of "The College Humor Show" was purchased by MTV last year. "There is tremendous opportunity in media going forward, at least in our version of media," Diller said.
IAC has been selectively making acquisitions in the content sector over the last several years. In addition to CollegeHumor, IAC recently purchased SportsPickle.com in March 2009 and HealthCentral Network Inc. in 2008. - Gerald Magpily