All Things Digital

Don’t miss this very good interview–does he ever give a bad one?–that IAC/InterActive Corp’s Barry Diller did with The Wall Street Journal’s Shira Ovide in today’s edition.

After a bruising court battle with shareholder and cable mogul John Malone of Liberty Media (LINTA), Diller finally broke apart the Internet conglomerate six weeks ago. His reason: IAC (IACI) had become too complex and its stock had suffered due to the operating confusion.

Here are BoomTown’s three favorite Diller killer quotes from The Journal interview …

On the breakup:

“I don’t have answers for anybody else. What I know is that internal complexity makes for superficiality. There’s never essentially a pure story unless there’s a pure product line that has its own shining clarity.”

On Internet advertising:

“You really want to get a headache? Try to understand Internet advertising. Social-networking advertising is being discounted because there is so much inventory [of available ad spots], and because methods have not yet been found to make it very effective. Will that get figured out? I absolutely believe it will. What form will it take? Absolutely unknown.”

On his fight with Malone:

“It is water down the drain. It’s unfortunate that executives of Liberty forced us into this process that resulted in the court affirming our position, but they did. It was hurtful to the company in which they’re investors, it was hurtful to me, it was a waste of time and money. It’s over. It certainly has no effect because my relations with John Malone are right and proper. They can have board members, but I outvote them.”

And, if you want more Diller unplugged, about all of the above and more, here is the highlight reel from my interview with him in May at the sixth D: All Things Digital conference.

Don’t miss his take on Hollywood children’s teeth.

The entire interview will go up next week in this blog, but here is the shorter video for now:

BoomTown had a lovely lunch yesterday with Jim Lanzone, former CEO of Ask, the little search engine that, well, tries, at least.

Lanzone had been at the company, which is owned by Barry Diller’s InteractiveCorp (IACI), for more than a half-dozen years, before stepping down in January in a management reshuffle at the company that put Match.com CEO Jim Safka at the top of Ask.

At the time, Diller praised Lanzone copiously in a statement, but noted that “these changes are intended to strengthen and streamline the operating structure at IAC, both leading up to our intended spinoffs, and beyond.”

For those not following IAC’s tribulations of late, Diller is currently embroiled in a vitriolic fight over control of the company with one of its biggest shareholders, Liberty Media, and its voluble leader John Malone.

That’s no longer Lanzone’s problem, although he remains a consultant to Ask for a little while longer and is also an entrepreneur-in-residence at Redpoint Ventures. He told BoomTown that he is still trying to figure out what to do next, but wants to remain on the product side of the consumer Internet business.

I like Lanzone a lot, especially given the more innovative and even aggressive efforts Ask has made to gain ground and try to put a dent in Google’s market share in recent years, laudable efforts a larger player like Yahoo might have been trying as hard.

While we despised the high-concept Kato Kaelin ads (see it once again posted below the Lanzone video to see why) Ask used this summer, BoomTown does not blame Lanzone for them–paging Barry Diller! All is forgiven anyway, since they were junked.

In any case, here is a video interview with Lanzone done yesterday, in which we talked about where search was headed:

How’s this for a juicy quote?:

“I am beginning to think these people are insane. … Everything they cite is hogwash.”

That’s what is known as a classic Barry Diller, who can be relied on to come out with a good one when provoked.

In this case, the provocateur is Liberty Media’s John Malone (pictured on the right in this comic with Diller), whose company has headed to court to try to remove Diller from his job as chairman and CEO of IAC/InterActiveCorp.

As chronicled by the always deft Jessica Vascellaro of The Wall Street Journal today, the fight between the longtime partners is getting uglier still with–oh, let’s just admit it–totally confusing moves and countermoves about the fate of IAC and its subsidiaries.

Liberty has a giant stake in all of these entities and Diller, of course, has control of that stake. A recipe for mogul mud wrestling, if ever there was one.

But the fight is a serious one for a number of high-profile Web companies within IAC, which was being restructured to stop just this kind of fighting between Diller and Malone.

Just how Diller has gone about rejiggering it all, in complicated spin-offs in a way that allegedly undercuts Liberty’s control yet again, is what set the new round of tensions off.

Those sites embroiled in the fighting include: Expedia, TicketMaster, LendingTree and Ask.

As luck would have it, Diller will be interviewed onstage at the sixth edition of D: All Things Digital in late May, so there will be plenty to talk about!

The last time I interviewed him at the Monaco Media Forum last November, Diller let loose too, when he memorably scoffed at the $15 billion valuation for Facebook and Microsoft’s $240 million investment in the hot social network.

“If it was real money, it would be insane, but since it isn’t really, then why bother [worrying about it],” said Diller. “It doesn’t mean anything, it is a phantom, false valuation. Let them sell for $14 billion, $998 million, and then I’ll believe them.”

One of the great things about interviewing Barry Diller, the Hollywood mogul turned Internet impresario (via InterActiveCorp), is that he actually answers questions you ask him.

Here is a sampling of quotes from my one-on-one interview with him onstage at the Monaco Media Forum on Friday morning, taken from the not-so-audible audio of my Flip video camera. But you’ll get the idea of why Diller (pictured here) remains one of the more robust characters out there.

We began talking about the split of IAC into five parts, lopping off unrelated businesses, with the backdrop of a struggle he has been engaged in with Liberty Media’s John Malone.

Why do it? “We were being superficial managers,” said Diller. For example, of the mortgage business around LendingTree, he said: “I have little to no interest and that is not how I want to live my life.”

(Very few execs, I can assure you, will admit to rank corporate boredom about their businesses.)

But Diller was just getting started, taking shots at everything from the “dumb” Hollywood writers’ strike to the insanity of Facebook’s $15 billion valuation, as well as his own corporate shortcomings.

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