FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

6 Months Ended

Jun. 30, 2011

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

NOTE 6—FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

        On July 8, 2011, IAC launched its previously announced tender offer for the 73% of Meetic that it does not own at a price per share of €15.00. The initial phase of the tender offer will close on August 29, 2011 and the second phase of the tender offer will close on September 19, 2011. In connection with the tender offer, IAC was obligated to place sufficient funds in escrow to purchase 100% of the shares that it does not own or $360.6 million. These funds are classified as a non-current asset as their expected use is to acquire a non-current asset. At the conclusion of the tender process, any unused funds will be returned to IAC.