IAC Inc. (IAC): A Bull Case Theory

We came across a bullish thesis on IAC Holding on High Growth Investing’s Substack by Stefan Waldhauser. As of 14ᵗʰ July, IAC Holding’s share was trading at $40.45.

IAC Holding, led by media mogul Barry Diller, presents a compelling investment opportunity with its intrinsic value significantly exceeding its current market price. The company’s structure, which includes a mix of large holdings such as MGM Resorts, Dotdash Meredith, and Turo, makes it challenging to evaluate using traditional key figures like price-to-earnings ratios. Instead, a sum-of-the-parts (SOTP) analysis reveals that IAC’s intrinsic value is over $6 billion, yet the market values it at just over $3 billion, a discount of approximately 50%. This discrepancy is likely due to the conglomerate discount, concerns about corporate governance, recent portfolio performance, and economic challenges in the digital advertising space.

The company’s portfolio includes a significant stake in MGM Resorts, valued at around $2.4 billion, which has a promising outlook with the development of MGM Osaka in Japan and the growth of BetMGM in the US online casino market. Dotdash Meredith, another key pillar, is valued at $2 billion, with a competitive advantage through its D/Cipher targeting platform. Turo, the peer-to-peer car-sharing platform, has potential for significant value increase if it successfully goes public or is taken over by a company like Uber. Additionally, IAC’s cash holdings of over $900 million provide financial flexibility for share buybacks, new investments, or debt repayment.

Several catalysts could increase IAC’s share price, including an IPO or spin-off of Dotdash Meredith, which could unlock $1-$2 billion in additional market value, and a successful IPO of Turo. Share buybacks, with an authorization to buy back 10 million shares, could also positively impact the share price. Despite risks such as the cyclical nature of digital advertising and potential disruption from AI, IAC shares offer an exciting long-term investment opportunity for patient value investors, essentially allowing them to buy a dollar for around 50 cents with downside protection from the balance sheet and strategic options for future growth.

Previously, we covered a bullish thesis on IAC Holding by Stefan Waldhauser on June 23, 2025, which highlighted the company’s potential as a backdoor play on AI through its energy infrastructure assets. The stock has appreciated by 8.91% since our coverage. The previous thesis emphasized IAC’s critical nuclear energy infrastructure assets and its role in powering AI data centers. the current thesis shares a similar bullish view but emphasizes IAC’s intrinsic value exceeding its market price, with a sum-of-the-parts analysis revealing a significant discount of approximately 50%.

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