IAC to take $170 million charge for mortgage, real estate units
Internet giant says it will write down charges related to its mortgage and real estate businesses because of the housing crisis.
The bad news for the lending crisis has rippled further on the Web.
IAC/InterActiveCorp, a conglomerate of Web sites including Ask.com, LendingTree.com, and Ticketmaster, said late Tuesday that it plans to write down $170 million in charges related to its mortgage and real estate businesses because of the housing fallout, according to a report from the Associated Press. It will report the charges in the first six months of the year ended June 30.
In a regulatory filing, IAC said that it will take a charge of $100 million related to its mortgage business, which includes LendingTree. And it will write down another $70 million related to its real estate unit, including RealEstate.com. That charge is because of "damage to goodwill" based on the perceived value of the market, according to the AP.
The filing comes as IAC plans to break up its company into five publicly traded segments by August. IAC will spin out Ticketmaster, its LendingTree and RealEstate.com properties, and its Internet media and search properties.
IAC's share price was up more than 3 percent to $18.85 in late morning trading.