The Delaware Chancery Court has handed Barry Diller a big victory, ruling that he can go ahead with his plan to split IAC/InterActive Corp. into five publicly traded companies. After a five-week trial, the court ruled that the proxy agreement under which Diller votes Liberty Media’s majority voting stake in IAC does not give Liberty the right to veto the proposed split-up. Liberty Media Chairman John Malone is incensed that the super-voting power his company owns in IAC, although voted by Diller, would be diluted to ordinary voting rights in the four new companies to be formed. Despite the court’s ruling, Malone could still try to get the IAC board of directors to reject Diller’s plan, or the companies could negotiate a deal to spin part of IAC off to Liberty Media in exchange for its stock.
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