Liberty Media Loses Court Bid To Block IAC Split Up Plan

A Delaware court has ruled against Liberty Media (LCAPA) in its effort to block IAC/InterActiveCorp (IACI) Chairman Barry Diller from advancing a plan to split IAC into five public companies, the Wall Street Journal is reporting.

It appears that Diller will be able to go forward with his plan for the four spin off companies to use a single class of stock, rather than the dual-class structure which gives Liberty’s John Malone a majority voting interest in IAC. Malone had argued that Diller’s plan to use a single-class voting structure with the spin-offs violated the terms of a long-standing agreement in which Diller has the right to vote Malone’s stake in IAC. Malone had asked the court to terminate that agreement, which would have given Malone control of IAC and ended Diller’s tenure at the company.

The WSJ reports that Vice Chancellor Stephen Lamb of the Chancery Court said that Diller didn’t violate his contract with Liberty, and doesn’t need Liberty’s consent to pursue the spin-off of four IAC business units.