(NADSAQ: IACI

)
Jordan Tipton
Andrew Yen
Kevin Zhang

Agenda
Executive Summary

Search and Applications

The Match Group
eCommerce and Media

Valuation

Company Overview
InterActive Corporation
Search & Applications





Ask.com
Investopedia
About.com
Dictionary.com
Citysearch.com

50% of Revenue
(29% Search, 21% Apps)

60% of EBITDA

Match Group









Match.com
OKCupid
Tinder
Chemistry.com
Twoo
Meetic
Zhenai
Friends Scout
Others
30% of Revenue
56% of EBITDA

Media

eCommerce




HomeAdvisor
Felix
ShoeBuy
Tutor.com

15% of Revenue
3% of EBITDA






Vimeo
Electus
DailyBurn
Daily Beast
CollegeHumor
Others

5% of Revenue
-7% of EBITDA

Why Invest in IACI?
The Street’s View
• Match Group’s growth slowed to 9.5% in Q2, and many fear growth will continue to fall
• IAC is compared to business like AOL and Yahoo, which trade at ~6.4x and 5.5x
EV/EBITDA
• View company as a Search and Applications business first and foremost
• Google negotiated more restrictive download policies and implemented new advertising
policies, adversely affecting this segment
• Management expects applications revenue to fall 20% before resuming growth in 2015
Our View
Strong long-term
prospects for Match
Group over time due to
subscriber growth and
operating leverage

58% of IAC’s value is
locked in the Match
Group

Significant value in
Search business despite
headwinds in
Applications

Applications

Applications
Toolbars and Apps

Queries include B2C and B2B, as well as downloadable applications queries from Ask.com

11%

Revenue down
11% in 1H 2014

15%

Queries down
15% in 1H 2014

Applications
Applications Revenue Growth
Applications Revenue
300

60.0%

250
200

185.4

178.6

188.2

207.6

208.2

50.0%

223.8
191.5

194.5

194.3

190.5

40.0%

150

30.0%

100

20.0%

50

10.0%

0
-50

0.0%
Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

-10.0%

-100

-20.0%

-150

-30.0%

-200

* Terms of the deal were undisclosed.

Google negotiates
more restrictive
toolbar application
download policies*

-40.0%

Applications
What Can we Expect?
The recent transition required by a new version of
Chrome is having an adverse effect on the segment

Distribution partners are struggling, posting
sequential declines and losing distribution to
competitors, hurting revenues in the B2B segment

IACI’s other segments dramatically mitigate
the projected share price decline

A BAD COMPANY

Search

Search
Strong Growing Online Properties

10%

Page views up
10% in 1H 2014

4%

Revenue up 4%
in 1H 2014

Search
Search Revenue Growth
Search Revenues

ValueClick O&O
added

300

60.0%

250
200

157.8

170.1

182.0

196.1

189.0

203.6

215.8

178.5

203.7

205.2

50.0%
40.0%

150

30.0%

100

20.0%

50

10.0%

0
-50

0.0%
Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

-10.0%

-100

-20.0%

-150

-30.0%

-200

About.com
added
Change in how
Ask.com could
market on Google

CityGrid Media
reclassified from
eCommerce
segment

-40.0%

Online Dating Industry

Online Dating Market Breakdown
Online Dating Site Differentiation

Online Dating Market Share

Interactive
Corp,
27.0%
Other,
54.1%

eHarmony
, Inc.,
13.8%

Source: Zosia Bielski and Tonia Cowan, 2010

Online dating sites differentiate themselves on a
spectrum of wholesome vs. raunchy and marriage
vs. one night stand

Zoosk
Inc., 5.1%
Plenty of
Fish, 1.1%

Source: IBISWorld

First
Media
Group,
1.8%

Spark
Networks
Inc., 3.2%

Changing Public Perception

1 in 5 25-34 year olds have used
online dating
Majority of people now think online dating is a good
way to meet people

Growing Online Dating Industry
Online Dating Industry

Generalized

Hookup

Specialized

Relationship

Match Group spans the online dating spectrum and
dominates the generalized category

Network Effect
• Daters choose platforms that
already have a large
membership, creating a barrier
to entry
• Generalized dating sites allow
users to sort by specific
interests/beliefs, reducing the
incentive to use specialized
dating sites

The Match Group

Match Group

Match Group
Growth Drivers
• Project monetization of Tinder
yielding $75mm in EBITDA by 2018
(analysts project $75mm in 2015)
• Monthly Active Users has grown at a
rate of 60%, potentially leading to
uptick in future subscriber growth
• Dating websites offer a tremendous
amount of operating leverage
• Overall Match Making Industry is
expected to grow 5% 1

Match Subscribers and Rev/Subscriber
6000

$25

5000

$20

4000
$15
3000
$10
2000
$5

1000
0

$2012

2013

2014

2015

Total Subscribers (thousands)

2016

2017

2018

2019

Revenue/Subscriber/Month

“To use a bad analogy, it's like a gateway. You use Tinder and suddenly you've done it. It works, you say, Oh,
this is great. And then suddenly, you're willing to do all these things. And that's happening globally. And so I
think that the category is going to get very large.” – Gregory Blatt, Chairman of Match Group
(1) Source: IBISWorld

Match Group: Operating Leverage
$1,200

$1,000

$800

$ in millions

EBITDA
$600

$400

Operating Expenses
$200

$-

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

eCommerce and Media

eCommerce

Segment Description
• Segment down 16% last year
• Hit by CityGrid (excluding this
portion, segment would have
been positive)
• HomeAdvisor increased revenue and
service requests by 20%
• Management expects Tutor.com to
take advantage of cost and revenue
synergies

Projected Growth
600.0
500.0
400.0
300.0
200.0
100.0
2012

2013

2014

2015

2016

2017

2018

2019

Media

Vimeo

• Represents 25% of IACI’s media
segment
• 500,000 subscribers, 100 million
users
• ~$100 rev/subscriber
• Subscriber base growing at
40%/yr
• 6x revenue




1b users
~$3.5 rev/user
User base flat at ~5%/yr
Valued at 6.7x revenue

IAC’s Upcoming Acquisitions
Expected to add ~$80m in annual revenue

• German dating site
• Makes IACI market leader in the
online dating market for
Germany (hopes to break profit
jam)

• Test preparation and college
admissions services company
• Offers test preparation services,
tutoring, admissions resources,
online courses, and books

Spin-off Optionality
History of spin-offs
• Barry Diller, Chairman and Senior Exectuvie, has a long
history of creating shareholder value through spin-offs.
• His previous spin-offs include Expedia (EXPE) and
TripAdvisor(TRIP)

Potential Match Group Spinoff
• Investors have been asking about the possibility of a Match
Group spin-off in earnings calls for years
• In late 2013 Barry Diller installed a separate management team
for Match Group, possibly setting it up for a spin-off
• IAC no longer has a CEO: Search & Applications, Match
Group and Media segments each of a CEO reporting to Diller

Value for Shareholders
There is a reason why investors have been asking about the
possibility of a Match Group Spin-off for years in earnings calls:
On average, shareholders gain 15.63% value after spin-offs1
(1) Source: M.D. Hamid Uddin, University of Sharjah

“I am the Spin Master”
Barry Diller
Chairman and Senior
Executive,
InterActiveCorp

Valuation

Sum of the Parts Valuation
Segments

EV/EBITDA % of Valuation

Search & Applications

6.0x

21%

The Match Group (ex-Tinder)

12.0x

56%

Tinder

20.0x

9%

Fair Value

Corporate

6.0x

-5%

$89

EV/Revenue
eCommerce

1.5x

15%

Media

2.6x

4%

Cases
Downside

Base

Upside

-100% revenue growth

-45% revenue growth

-20% revenue growth
before going to 2%

Search

4% revenue growth

4% revenue growth

4% revenue growth

The Match Group

-1% revenue growth

8% revenue growth

12% revenue growth

$50m revenue &
$20m EBITDA

$70m revenue &
$34m EBITDA

$88m revenue &
$53m EBITDA

eCommerce

5% revenue growth

5% revenue growth

5% revenue growth

Media

10% revenue growth

10% revenue growth

10% revenue growth

Current Price
$66.72

Downside Case
$48 (-29%)

Base Case
$89 (+34%)

Upside Case
$124 (+86%)

Probabilities

20%

50%

30%

Applications

Tinder

Price Target
All numbers and growth rates are estimated 2015 projections

$91.40 (+37%)

Appendix

Model Summary: Upside Case
Revenue Build
($ in millions)
Search (Websites)
% Growth
Applications
% Growth
Search & Applications (Total)
% Growth
The Match Group (ex-Tinder)
% Growth
Total Subscribers
% Growth
Revenue/Subscriber
% Growth
Tinder
% of Revenue
eCommerce
% of Revenue
Media
% of Revenue
Corporate
Total Revenue
EBITDA
Search & Applications (Total)
% Margin
The Match Group (ex-Tinder) EBITDA
% Margin
The Match Group (ex-Tinder) Operating Expenses
% Growth
Tinder
% Margin
The Match Group (Total)
% Margin
eCommerce
% Margin
Media
% Margin
Corporate
Total EBITDA
% Margin
% Growth

2012A
706.0

2014E
Q2A
Q3E
205.2
215.5
0.8%
-0.2%
190.5
156.3
-14.9%
-18.4%
395.7
371.7
-7.4%
-8.7%
207.6
216.7
6.8%
7.7%
3,500
3,675
9.5%
11.1%
0.059
0.059
-2.5%
-3.0%
5
0.0%
0.7%
109.9
105.7
14.7%
14.3%
36.7
40.2
4.9%
5.4%
(0.3)
(0.3)
749.6
739.1

457.1
16.3%
164.1
5.9%
(0.4)
2,800.0

421.9
14.0%
191.4
6.4%
(0.9)
3,005.5

328.3
22.4%
236.7
33.2%
477

385.8
24.0%
266.9
33.9%
521
9%

82.1
20.6%
47.4
23.1%
158
11.9%

91.3
23.1%
69.4
33.4%
138
9.1%

78.1
21.0%
87.2
40.3%
134
2.0%
2
45.0%

79.1
21.0%
110.0
49.0%
124
2.0%
5
50.0%

330.6
21.4%
314.0
36.8%
555
17.6%
7

76.8
21.0%
76.6
33.5%
167
6.0%
9
60.0%

76.5
21.0%
105.1
45.4%
146
6.0%
12
60.0%

80.4
21.0%
124.2
51.4%
143
6.0%
15
60.0%

81.4
21.0%
146.4
58.5%
132
6.0%
17
60.0%

315.2
21.0%
452.3
47.5%
588
44.0%
53

319.4
21.0%
550.6
52.8%
623
6.0%
78
60.0%

348.8
21.0%
616.6
54.7%
661
6.0%
90
60.0%

362.6
21.0%
660.3
55.2%
700
6.0%
99
60.0%

380.5
21.0%
689.2
54.9%
742
6.0%
105
60.0%

236.7
33.2%
31.2
6.8%
(38.6)
-23.5%
(60.1)
497.5
17.8%

266.9
33.9%
22.9
5.4%
(17.0)
-8.9%
(60.4)
598.2
19.9%
20%

47.4
23.1%
2.8
3.0%
(7.9)
-21.7%
(16.3)
108.1
14.7%
-14.7%

69.4
33.4%
4.5
4.1%
(8.9)
-24.3%
(14.8)
141.5
18.9%
-10.4%

89.5
40.4%
4.2
4.0%
(8.9)
-22.0%
(16.1)
146.9
19.9%
-10.2%

115.0
49.1%
4.4
4.0%
(9.3)
-22.0%
(18.4)
170.7
22.4%
13.8%

321.3
37.0%
15.9
3.8%
(35.0)
-22.5%
(65.6)
567.1
19.0%
-5.2%

85.6
35.1%
4.0
4.0%
(8.0)
-20.0%
(14.9)
143.5
19.2%
32.7%

117.1
46.5%
4.6
4.0%
(8.1)
-20.0%
(17.8)
172.3
22.3%
21.8%

139.2
52.2%
4.4
4.0%
(8.9)
-20.0%
(20.0)
195.1
24.3%
32.9%

163.2
58.7%
4.6
4.0%
(9.3)
-20.0%
(22.3)
217.6
26.3%
27.5%

505.1
48.6%
17.6
4.0%
(34.3)
-20.0%
(75.1)
728.5
23.1%
28.5%

628.6
53.6%
18.5
4.0%
(37.7)
-20.0%
(85.1)
843.7
25.2%
15.8%

706.6
55.3%
19.4
4.0%
(41.5)
-20.0%
(94.3)
939.0
25.9%
11.3%

759.3
55.8%
20.4
4.0%
(45.6)
-20.0%
(99.8)
996.9
26.1%
6.2%

794.2
55.5%
21.4
4.0%
(50.2)
-20.0%
(104.1)
1,041.8
25.9%
4.5%

1,465.8
713.4
2,812
0.254

Q4E
217.9
22.1%
158.7
-18.4%
376.7
1.0%
224.3
10.0%
3,804
13.3%
0.059
-2.9%
10
1.3%
108.9
14.3%
42.5
5.6%
(0.3)
762.0

2014E
842.3
7.0%
699.8
-14.5%
1,542.1
-3.9%
853.6
8.3%
3,804
13.3%
0.224
-4.4%
15
0.5%
419.3
14.0%
155.8
5.2%
(1.1)
2,984.7

Q1E
211.2
3.7%
154.6
-20.4%
365.8
-8.1%
228.7
11.6%
3,988
15.0%
0.057
-3.0%
15
2.0%
99.5
13.3%
40.0
5.3%
(0.3)
748.7

2015E
Q2E
Q3E
212.8
223.4
3.7%
3.7%
151.6
159.4
-20.4%
2.0%
364.3
382.8
-7.9%
3.0%
231.6
241.7
11.6%
11.6%
4,025
4,227
15.0%
15.0%
0.058
0.057
-3.0%
-3.0%
20
25
2.6%
3.1%
115.4
111.0
15.0%
13.8%
40.4
44.3
5.2%
5.5%
(0.3)
(0.3)
771.4
804.4

Q1A
203.7
7.8%
194.3
-6.7%
398.0
0.2%
205.0
8.6%
3,468
10.4%
0.059
-1.7%
0.0%
94.8
12.9%
36.4
5.0%
(0.2)
734.0

759.8

2013A
786.9
11.5%
818.0
7.7%
1,604.9
9.5%
788.2
10%
3,357
19.4%
0.235
-7.5%

Q4E
226.0
3.7%
161.9
2.0%
387.9
3.0%
250.2
11.6%
4,375
15.0%
0.057
-3.0%
28
3.4%
114.3
13.8%
46.7
5.6%
(0.3)
826.8

2015E
873.3
3.7%
627.4
-10.3%
1,500.7
-2.7%
952.2
11.6%
4,375
15.0%
0.218
-3.0%
88
2.8%
440.3
14.0%
171.4
5.4%
(1.2)
3,151.4

2016E
881.1
0.9%
640.0
2.0%
1521.1
1.4%
1,043.7
9.6%
4,944
13.0%
0.211
-3.0%
130
3.9%
462.3
13.8%
188.5
5.6%
(1.2)
3,344.4

2017E
1,008.1
14.4%
652.8
2.0%
1660.8
9.2%
1,127.1
8.0%
5,503
11.3%
0.205
-3.0%
150
4.1%
485.4
13.4%
207.4
5.7%
(1.2)
3,629.6

2018E
1,060.9
5.2%
665.8
2.0%
1726.7
4.0%
1,195.4
6.1%
6,017
9.3%
0.199
-3.0%
165
4.3%
509.7
13.3%
228.1
6.0%
(1.2)
3,823.7

2019E
1,132.8
6.8%
679.1
2.0%
1811.9
4.9%
1,256.3
5.1%
6,518
8.3%
0.193
-3.0%
175
4.3%
535.2
13.3%
250.9
6.2%
(1.2)
4,028.1

Model Summary: Base Case
Revenue Build
($ in millions)
Search (Websites)
% Growth
Applications
% Growth
Search & Applications (Total)
% Growth
The Match Group (ex-Tinder)
% Growth
Total Subscribers
% Growth
Revenue/Subscriber
% Growth
Tinder
% of Revenue
eCommerce
% of Revenue
Media
% of Revenue
Corporate
Total Revenue
EBITDA
Search & Applications (Total)
% Margin
The Match Group (ex-Tinder) EBITDA
% Margin
The Match Group (ex-Tinder) Operating Expenses
% Growth
Tinder
% Margin
The Match Group (Total)
% Margin
eCommerce
% Margin
Media
% Margin
Corporate
Total EBITDA
% Margin
% Growth

2012A
706.0

2014E
Q2A
Q3E
205.2
209.2
0.8%
-3.0%
190.5
105.3
-14.9%
-45.0%
395.7
314.6
-7.4%
-22.8%
207.6
209.8
6.8%
4.3%
3,500
3,559
9.5%
7.6%
0.059
0.059
-2.5%
-3.0%
0.0%
0.0%
109.9
103.8
14.7%
15.6%
36.7
38.2
4.9%
5.7%
(0.3)
(0.3)
749.6
666.1

457.1
16.3%
164.1
5.9%
(0.4)
2,800.0

421.9
14.0%
191.4
6.4%
(0.9)
3,005.5

328.3
22.4%
236.7
33.2%
477

385.8
24.0%
266.9
33.9%
521
9%

82.1
20.6%
47.4
23.1%
158
11.9%

91.3
23.1%
69.4
33.4%
138
9.1%

66.1
21.0%
71.4
34.0%
138
5.0%
40.0%

66.8
21.0%
94.1
43.3%
128
5.0%
2
42.5%

306.3
21.5%
282.3
33.6%
562
5.8%
2

66.8
21.0%
56.4
25.5%
175
11.0%
5
45.0%

66.7
21.0%
85.8
38.3%
153
11.0%
7
47.5%

65.5
21.0%
93.0
41.0%
154
11.0%
10
50.0%

66.2
21.0%
117.3
50.0%
142
11.0%
13
50.0%

265.1
21.0%
352.5
38.9%
624
24.9%
34

259.1
21.0%
394.6
40.8%
693
11.0%
60
50.0%

277.9
21.0%
384.5
37.9%
769
11.0%
70
50.0%

282.0
21.0%
338.5
32.5%
853
11.0%
75
50.0%

286.5
21.0%
273.9
25.8%
947
11.0%
80
50.0%

236.7
33.2%
31.2
6.8%
(38.6)
-23.5%
(60.1)
497.5
17.8%

266.9
33.9%
22.9
5.4%
(17.0)
-8.9%
(60.4)
598.2
19.9%
20%

47.4
23.1%
2.8
3.0%
(7.9)
-21.7%
(16.3)
108.1
14.7%
-14.7%

69.4
33.4%
4.5
4.1%
(8.9)
-24.3%
(14.8)
141.5
18.9%
-10.4%

71.4
34.0%
4.2
4.0%
(8.4)
-22.0%
(13.3)
119.9
18.0%
-26.7%

96.2
43.3%
4.4
4.0%
(9.3)
-22.0%
(15.6)
142.4
20.6%
-5.0%

284.4
33.7%
15.8
3.8%
(34.6)
-22.5%
(60.0)
511.9
18.0%
-14.4%

60.9
26.3%
4.0
4.0%
(8.0)
-20.0%
(11.9)
111.8
16.2%
3.4%

92.9
38.8%
4.6
4.0%
(8.1)
-20.0%
(14.9)
141.2
19.8%
-0.2%

103.0
41.8%
4.4
4.0%
(8.4)
-20.0%
(15.4)
149.0
21.0%
24.3%

129.8
50.0%
4.6
4.0%
(9.3)
-20.0%
(17.9)
173.3
23.6%
21.7%

386.7
39.6%
17.5
4.0%
(33.8)
-20.0%
(60.1)
575.3
20.2%
12.4%

454.6
41.8%
18.4
4.0%
(37.2)
-20.0%
(63.5)
631.5
21.3%
9.8%

454.5
39.4%
19.3
4.0%
(40.9)
-20.0%
(64.1)
646.7
20.4%
2.4%

413.5
34.7%
20.3
4.0%
(45.0)
-20.0%
(59.6)
611.2
18.7%
-5.5%

353.9
29.0%
21.3
4.0%
(49.5)
-20.0%
(53.2)
559.0
16.6%
-8.5%

1,465.8
713.4
2,812
0.254

Q4E
211.1
18.3%
107.0
-45.0%
318.1
-14.7%
217.1
6.5%
3,683
9.7%
0.059
-3.0%
5
0.7%
108.9
15.8%
42.5
6.1%
(0.3)
691.2

2014E
829.2
5.4%
597.1
-27.0%
1,426.3
-11.1%
839.5
6.5%
3,683
9.7%
0.228
-2.9%
5
0.2%
417.4
14.7%
153.8
5.4%
(1.1)
2,841.0

Q1E
211.2
3.7%
106.9
-45.0%
318.1
-20.1%
221.3
8.0%
3,863
11.4%
0.057
-3.1%
10
1.5%
99.5
14.5%
40.0
5.8%
(0.3)
688.7

2015E
Q2E
Q3E
212.8
216.9
3.7%
3.7%
104.8
94.8
-45.0% -10.0%
317.5
311.7
-19.8%
-0.9%
224.2
226.6
8.0%
8.0%
3,899
3,964
11.4%
11.4%
0.058
0.057
-3.1%
-3.0%
15
20
2.1%
2.8%
115.4
109.0
16.2%
15.4%
40.4
42.1
5.7%
5.9%
(0.3)
(0.3)
712.2
709.2

Q1A
203.7
7.8%
194.3
-6.7%
398.0
0.2%
205.0
8.6%
3,468
10.4%
0.059
-1.7%
0.0%
94.8
12.9%
36.4
5.0%
(0.2)
734.0

759.8

2013A
786.9
11.5%
818.0
7.7%
1,604.9
9.5%
788.2
10%
3,357
19.4%
0.235
-7.5%

Q4E
218.9
3.7%
96.3
-10.0%
315.1
-0.9%
234.4
8.0%
4,102
11.4%
0.057
-3.0%
25
3.4%
114.3
15.5%
46.7
6.4%
(0.3)
735.3

2015E
859.8
3.7%
402.7
-32.6%
1,262.5
-11.5%
906.6
8.0%
4,102
11.4%
0.221
-3.0%
70
2.5%
438.3
15.4%
169.2
5.9%
(1.2)
2,845.3

2016E
871.5
1.4%
362.4
-10.0%
1234.0
-2.3%
967.3
6.7%
4,512
10.0%
0.214
-3.0%
120
4.0%
460.2
15.5%
186.1
6.3%
(1.2)
2,966.4

2017E
997.1
14.4%
326.2
-10.0%
1323.3
7.2%
1,013.3
4.8%
4,873
8.0%
0.208
-3.0%
140
4.4%
483.2
15.3%
204.7
6.5%
(1.2)
3,163.3

2018E
1,049.3
5.2%
293.6
-10.0%
1342.9
1.5%
1,041.9
2.8%
5,165
6.0%
0.202
-3.0%
150
4.6%
507.4
15.5%
225.2
6.9%
(1.2)
3,266.1

2019E
1,100.3
4.9%
264.2
-10.0%
1364.5
1.6%
1,061.2
1.9%
5,423
5.0%
0.196
-3.0%
160
4.8%
532.8
15.8%
247.7
7.4%
(1.2)
3,364.9

Model Summary: Downside Case
Revenue Build
($ in millions)
Search (Websites)
% Growth
Applications
% Growth
Search & Applications (Total)
% Growth
The Match Group (ex-Tinder)
% Growth
Total Subscribers
% Growth
Revenue/Subscriber
% Growth
Tinder
% of Revenue
eCommerce
% of Revenue
Media
% of Revenue
Corporate
Total Revenue
EBITDA
Search & Applications (Total)
% Margin
The Match Group (ex-Tinder) EBITDA
% Margin
The Match Group (ex-Tinder) Operating Expenses
% Growth
Tinder
% Margin
The Match Group (Total)
% Margin
eCommerce
% Margin
Media
% Margin
Corporate
Total EBITDA
% Margin
% Growth

2012A
706.0

2014E
Q2A
Q3E
205.2
205.1
0.8%
-5.0%
190.5
93.8
-14.9%
-51.0%
395.7
298.9
-7.4%
-26.6%
207.6
194.8
6.8%
-3.1%
3,500
3,485
9.5%
5.3%
0.059
0.056
-2.5%
-8.0%
0.0%
0.0%
109.9
103.8
14.7%
16.3%
36.7
38.2
4.9%
6.0%
(0.3)
(0.3)
749.6
635.5

457.1
16.3%
164.1
5.9%
(0.4)
2,800.0

421.9
14.0%
191.4
6.4%
(0.9)
3,005.5

328.3
22.4%
236.7
33.2%
477

385.8
24.0%
266.9
33.9%
521
9%

82.1
20.6%
47.4
23.1%
158
11.9%

91.3
23.1%
69.4
33.4%
138
9.1%

62.8
21.0%
49.8
25.6%
145
10.0%
35.0%

61.7
21.0%
67.5
33.5%
134
10.0%
35.0%

297.9
21.5%
234.1
28.9%
575
-12.3%
-

44.4
21.0%
27.4
13.5%
181
15.0%
2
40.0%

44.7
21.0%
57.3
27.8%
159
15.0%
4
40.0%

44.7
21.0%
41.8
21.6%
167
15.0%
6
40.0%

43.3
21.0%
66.1
33.0%
154
15.0%
8
40.0%

176.9
21.0%
192.7
24.0%
661
-17.7%
20

N/A
21.0%
138.4
17.3%
760
15.0%
40
40.0%

N/A
21.0%
24.6
3.2%
874
15.0%
48
40.0%

N/A
21.0%
(120.2)
-16.1%
1,005
15.0%
56
40.0%

N/A
21.0%
(300.1)
-42.5%
1,156
15.0%
60
40.0%

236.7
33.2%
31.2
6.8%
(38.6)
-23.5%
(60.1)
497.5
17.8%

266.9
33.9%
22.9
5.4%
(17.0)
-8.9%
(60.4)
598.2
19.9%
20%

47.4
23.1%
2.8
3.0%
(7.9)
-21.7%
(16.3)
108.1
14.7%
-14.7%

69.4
33.4%
4.5
4.1%
(8.9)
-24.3%
(14.8)
141.5
18.9%
-10.4%

49.8
25.6%
4.2
4.0%
(8.4)
-22.0%
(10.8)
97.5
15.3%
-40.4%

67.5
33.5%
4.4
4.0%
(9.3)
-22.0%
(12.4)
111.8
17.3%
-25.4%

234.1
28.9%
15.8
3.8%
(34.6)
-22.5%
(54.4)
458.9
16.6%
-23.3%

29.4
14.1%
4.0
4.0%
(8.0)
-20.0%
(6.8)
63.0
11.3%
-41.7%

61.3
28.4%
4.6
4.0%
(8.1)
-20.0%
(9.9)
92.7
15.9%
-34.5%

47.8
22.9%
4.4
4.0%
(8.4)
-20.0%
(8.2)
80.2
14.0%
-17.8%

74.1
33.6%
4.6
4.0%
(9.3)
-20.0%
(10.5)
102.1
17.4%
-8.7%

212.7
24.9%
17.5
4.0%
(33.8)
-20.0%
(35.3)
338.0
14.7%
-26.3%

178.4
19.9%
18.4
4.0%
(37.2)
-20.0%
N/A
N/A
N/A
N/A

72.6
8.1%
19.3
4.0%
(40.9)
-20.0%
N/A
N/A
N/A
N/A

(64.2)
-7.3%
20.3
4.0%
(45.0)
-20.0%
N/A
N/A
N/A
N/A

(240.1)
-28.0%
21.3
4.0%
(49.5)
-20.0%
N/A
N/A
N/A
N/A

1,465.8
713.4
2,812
0.254

Q4E
198.7
11.3%
95.3
-51.0%
294.0
-21.2%
201.6
-1.1%
3,606
7.4%
0.056
-8.0%
0.0%
108.9
16.8%
42.5
6.6%
(0.3)
646.6

2015E
2014E
Q1E
Q2E
Q3E
Q4E
812.7
211.2
212.8
212.6
206.0
3.3%
3.7%
3.7%
3.7%
3.7%
573.9
-29.8% -100.0% -100.0% -100.0% -100.0%
1,386.6
211.2
212.8
212.6
206.0
-13.6% -46.9% -46.2% -28.9% -29.9%
809.0
203.7
206.3
193.6
200.3
2.6%
-0.6%
-0.6%
-0.6%
-0.6%
3,606
3,745
3,780
3,763
3,895
7.4%
8.0%
8.0%
8.0%
8.0%
0.224
0.054
0.055
0.051
0.051
-4.4%
-8.0%
-8.0%
-8.0%
-8.0%
5
10
15
20
0.0%
0.9%
1.7%
2.6%
3.4%
417.4
99.5
115.4
109.0
114.3
15.1%
17.8%
19.7%
19.1%
19.5%
153.8
40.0
40.4
42.1
46.7
5.6%
7.2%
6.9%
7.4%
8.0%
(1.1)
(0.3)
(0.3)
(0.3)
(0.3)
2,765.7
559.2
584.5
572.0
587.0

Q1A
203.7
7.8%
194.3
-6.7%
398.0
0.2%
205.0
8.6%
3,468
10.4%
0.059
-1.7%
0.0%
94.8
12.9%
36.4
5.0%
(0.2)
734.0

759.8

2013A
786.9
11.5%
818.0
7.7%
1,604.9
9.5%
788.2
10%
3,357
19.4%
0.235
-7.5%

2015E
842.6
3.7%
-100.0%
842.6
-39.2%
803.8
-0.6%
3,895
8.0%
0.206
-8.0%
50
2.2%
438.3
19.0%
169.2
7.3%
(1.2)
2,302.7

2016E
859.9
2.1%
N/A
N/A
N/A
N/A
798.7
-0.6%
4,206
8.0%
0.190
-8.0%
100
N/A
460.2
N/A
186.1
N/A
(1.2)
N/A

2017E
983.8
14.4%
N/A
N/A
N/A
N/A
778.9
-2.5%
4,459
6.0%
0.175
-8.0%
120
N/A
483.2
N/A
204.7
N/A
(1.2)
N/A

2018E
1,035.3
5.2%
N/A
N/A
N/A
N/A
745.2
-4.3%
4,637
4.0%
0.161
-8.0%
140
N/A
507.4
N/A
225.2
N/A
(1.2)
N/A

2019E
1,055.7
2.0%
N/A
N/A
N/A
N/A
706.2
-5.2%
4,776
3.0%
0.148
-8.0%
150
N/A
532.8
N/A
247.7
N/A
(1.2)
N/A

Valuation Summary: Upside Case
Enterprise Value
Equity
Debt
Less: Cash

5,551
1,080
987

Enterprise Value

5,644

Stock Price (as of 9/23/14)

$66.72

EV/ 2015E EBITDA

11.0

SOTP Valuation
Segement
EV/EBITDA, 2015
Enterprise Value
%of Valuation
7.0x
Search & Applications (Total)
2,206
21.2%
The Match Group (ex-Tinder)
5,880
56.6%
13.0x
22.0x
Tinder
1,162
11.2%
8.0x
Corporate
(601)
-5.8%
EV/Revenue, 2015
2.5x
1,321
eCommerce
12.7%
428
3.0x
Media
4.1%
10,396
Equity Value
Proj. Stock Price
Return

Multiple Assumptions
EV/EBITDA, 2015
7.0x
Search & Applications (Total)
13.0x
The Match Group (ex-Tinder)
22.0x
Tinder
8.0x
Corporate
EV/Rev., 2015
2.5x
eCommerce
3.0x
Media

10,304
123.84
86%

Valuation Summary: Base Case
Enterprise Value
Equity
Debt
Less: Cash

5,551
1,080
987

Enterprise Value

5,644

Stock Price (as of 9/23/14)

$66.72

EV/ 2015E EBITDA

12.2

SOTP Valuation
Segement
EV/EBITDA, 2015
Enterprise Value
%of Valuation
6.0x
Search & Applications (Total)
1,591
21.1%
The Match Group (ex-Tinder)
4,230
56.1%
12.0x
20.0x
Tinder
683
9.1%
6.0x
Corporate
(361)
-4.8%
EV/Revenue, 2015
1.5x
1,140
eCommerce
15.1%
254
2.6x
Media
3.4%
7,536
Equity Value
Proj. Stock Price
Return

Multiple Assumptions
EV/EBITDA, 2015
6.0x
Search & Applications (Total)
12.0x
The Match Group (ex-Tinder)
20.0x
Tinder
6.0x
Corporate
EV/Rev., 2015
1.5x
eCommerce
2.6x
Media

7,443
89.46
34%

Valuation Summary: Downside Case
Enterprise Value
Equity
Debt
Less: Cash

5,551
1,080
987

Enterprise Value

5,644

Stock Price (as of 9/23/14)

$66.72

EV/ 2015E EBITDA

15.1

SOTP Valuation
Segement
EV/EBITDA, 2015
Enterprise Value
%of Valuation
5.5x
Search & Applications (Total)
973
24.0%
The Match Group (ex-Tinder)
2,120
52.3%
11.0x
18.0x
Tinder
360
8.9%
4.0x
Corporate
(141)
-3.5%
EV/Revenue, 2015
0.5x
657
eCommerce
16.2%
85
1.5x
Media
2.1%
4,054
Equity Value
Proj. Stock Price
Return

Multiple Assumptions
EV/EBITDA, 2015
5.5x
Search & Applications (Total)
11.0x
The Match Group (ex-Tinder)
18.0x
Tinder
4.0x
Corporate
EV/Rev., 2015
0.5x
eCommerce
1.5x
Media

3,961
47.61
-29%

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.