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Source: IAC-MyYearbook acquisition rumors are false

Multiple sources close to the company indicated to CNET that the rumor reported by tech gossip blog Valleywag arose from a "mock pitch" at the Quadrangle Group media conference.

Several sources close to InterActiveCorp (IAC) have told CNET that, contrary to rumors, the media conglomerate is not purchasing youth-oriented social-networking site MyYearbook. The rumor was originally reported by Valleywag on Wednesday.

The misconception arose, one source said, because MyYearbook was one of multiple start-ups that were invited to do "mock pitches" to IAC chairman and CEO Barry Diller as part of a session at this week's exclusive Quadrangle conference (hosted by the eponymous private equity firm) at the Pierre Hotel in Manhattan. Essentially, it was like moot court for entrepreneurs.

MyYearbook was founded by a pair of teenage siblings from New Jersey while on their spring break in 2005, and has since raised $4.1 million in venture capital from U.S. Venture Partners and First Round Capital. Representatives from the social network did not respond to a request for comment.

An additional source within an IAC-owned brand, when asked about the possible acquisition, was unfamiliar with any such deal. And indeed, the timing would be rather awkward--in an attempt to refocus its sprawling array of media, e-commerce, and retail brands, IAC announced on Monday that it would be splitting into five separate publicly traded companies. The core IAC company will now consist primarily of advertising-supported online media brands.