IAC/InterActiveCorp Buys Its Own Piece of Web 2.0

Acquires 51% Stake in Collegehumor.com

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NEW YORK (AdAge.com) -- After a decade of amassing web-based services companies like CitySearch and Expedia, IAC/InterActiveCorp is finally getting into the consumer-driven world of web programming. Barry Diller's conglomerate today said it was acquiring a majority stake in the parent company of Collegehumor.com, a bastion for sophomoric humor in the form of videos, photos, jokes and games.
CollegeHumor, an online destination popular among the MySpace crowd, draws 6 million unique visitors a month.
CollegeHumor, an online destination popular among the MySpace crowd, draws 6 million unique visitors a month.

Center of community
The move, like News Corp.'s acquisition of MySpace last year, gives IAC the opportunity to reach a passionate, well-defined, and rapidly growing community of young people on their terms. Like YouTube and MySpace, CollegeHumor has already positioned itself at the center of this community. It's now drawing more than 6 million unique visitors per month and is generating north of 200 million monthly page views, according to Nielsen Site Census. YouTube, by comparison, attracted more than 13 million uniques in June, and 613 million page views, according to ComScore.

"With its distinct brand of humor, CollegeHumor has emerged as a viral success with an enormously loyal audience among young adults," said Michael Jackson, president, IAC Programming.

CollegeHumor becomes the first property in IAC's programming unit, which launched in January. Under Mr. Diller, IAC has spent the last decade acquiring web companies such as CitySearch, Evite, Expedia and LendingTree.

Full voting control
IAC is getting a 51% stake and full voting control of CollegeHumor's parent, Connected Ventures. Josh Abramson and Ricky Van Veen, who founded the company while in college in 1999, will continue to oversee the company's operations.

"It's the perfect platform to help us take Connected Ventures to the next level, and enables us to exploit the many opportunities to grow CollegeHumor, as well as pursue other creative and entrepreneurial endeavors," Mr. Abramson said.
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