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IAC to take $170M in charges for spinoffs

AP:

Internet conglomerate IAC/InterActiveCorp, preparing to spin off four of its operating units, said late Tuesday it plans to take about $170 million in charges because the housing crisis has diminished the value of its mortgage and real estate businesses.

The New York-based company revealed in a regulatory filing that it will have to write down the value of its lending unit, which includes the LendingTree.com Web site, by $100 million.

Its real estate segment, which includes the RealEstate.com Web site and related brokerage businesses, will take a $70 million hit because of damage to their goodwill, which refers to intangibles such as reputation or perceived value to the market.

IAC said the company had to adjust its valuations of the business units because their future profitability has been hurt by the mortgage mess and its fallout.

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