EX-99.3 4 a2205829zex-99_3.htm EX-99.3
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Exhibit 99.3


IAC/INTERACTIVECORP AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION

        The following unaudited pro forma condensed financial information gives effect to IAC's acquisition, through its wholly-owned subsidiary Match.com ("Match"), of a controlling financial interest in Meetic S.A. ("Meetic") pursuant to its previously announced tender offer for the 73% of Meetic that it did not previously own (the "Meetic Acquisition"). The tender offer price was €15.00 per share. Following the completion of tender offer, IAC owned an 81% interest in Meetic and will consolidate Meetic's financial statements with effect from September 1, 2011.

        The unaudited pro forma condensed balance sheet gives effect to the transaction as if it had occurred on June 30, 2011. The unaudited pro forma condensed statements of operations assumes that the transaction had occurred on January 1, 2010. The unaudited pro forma condensed financial statements were prepared using:

    •
    the historical consolidated statement of operations for IAC for the year ended December 31, 2010;

    •
    the historical consolidated statement of operations for Meetic for the year ended December 31, 2010;

    •
    the historical consolidated statement of operations for IAC for the six months ended June 30, 2011;

    •
    the historical consolidated statement of operations for Meetic for the six months ended June 30, 2011;

    •
    the historical consolidated balance sheet for IAC as of June 30, 2011; and

    •
    the historical consolidated balance sheet for Meetic as of June 30, 2011.

        The unaudited pro forma condensed financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if the Meetic Acquisition had occurred as of January 1, 2010 nor the financial position that would have been achieved if the Meetic Acquisition had occurred as of June 30, 2011. The unaudited pro forma financial information is also not necessarily indicative of future operating results or financial position.

C-1


IAC/INTERACTIVECORP AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED BALANCE SHEET

JUNE 30, 2011

(amounts in millions)

 
   IAC
USD 		  Meetic
EURO 		  Meetic
USD 		  Subtotal
USD 		  Pro Forma
Adjustments
USD 		  Notes   Total
USD 		 
 
    
    
   Converted @
FX rate of
1.4391
    
    
    
    
  

ASSETS

                                            

Cash and cash equivalents

   $ 622.9   € 39.2   $ 56.4   $ 679.3   $ (2.5 )   (c)   $ 765.4  

                            88.6     (e)        

Marketable securities

     289.0     —     —     289.0                 289.0  

Accounts receivable, net

     126.9     8.6     12.4     139.3                 139.3  

Other current assets

     110.3     17.8     25.6     135.9     13.2     (a)     149.1  
                                 
 

Total current assets

     1,149.1     65.6     94.4     1,243.5     99.3           1,342.8  

Funds held in escrow for Meetic tender offer

     360.6     —     —     360.6     (272.0 )   (a)     —  

                            (88.6 )   (e)        

Property and equipment, net

     261.1     3.1     4.5     265.6                 265.6  

Goodwill

     1,077.5     193.4     278.3     1,355.8     17.8     (a)     1,373.6  

Intangible assets, net

     245.8     23.6     34.0     279.8     133.3     (a)     413.1  

Long-term investments

     255.9     21.7     31.2     287.1     (132.7 )   (a)     116.5  

                            6.2     (a)        

                            (6.7 )   (b)        

                            (37.4 )   (d)        

Other non-current assets

     159.3     2.6     3.7     163.0                 163.0  
                                 

TOTAL ASSETS

   $ 3,509.3     €310.0   $ 446.1   $ 3,955.4   $ (280.8 )       $ 3,674.6  
                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                                            

Accounts payable, trade

   $ 47.3   € 9.7   $ 14.0   $ 61.3               $ 61.3  

Deferred revenue

     90.4     26.6     38.3     128.7   $ (38.3 )   (a)     90.4  

Accrued expenses and other current liabilities

     267.8     27.0     38.8     306.6     48.0     (a)     354.6  
                                 
 

Total current liabilities

     405.5     63.3     91.1     496.6     9.7           506.3  

Long-term liabilities

     575.7     6.7     9.6     585.3                 585.3  

Redeemable noncontrolling interests

     56.5           —     56.5     (37.4 )   (d)     19.1  

                      —                    

SHAREHOLDERS' EQUITY

    
2,471.6		    
240.0		    
345.4		    
2,817.0		    
(345.4
)		  
(a)		    
2,563.9		  

                            101.5     (a)        

                            (6.7 )   (b)        

                            (2.5 )   (c)        
                                 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

   $ 3,509.3     €310.0   $ 446.1   $ 3,955.4   $ (280.8 )       $ 3,674.6  
                                 

C-2


IAC/INTERACTIVECORP AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2010

(amounts in millions, except per share amounts)

 
   IAC
USD
   Meetic
EURO 		  Meetic
USD 		  Subtotal
USD 		  Pro Forma
Adjustments
USD 		  Notes   Total
USD 		 
 
    
    
   Converted @
FX rate of
1.32789
    
    
    
    
  

Revenue

   $ 1,636.8   € 186.0   $ 247.0   $ 1,883.8   $ (31.0 ) (g)   $ 1,852.8  

Costs and expenses

     1,587.0     151.8     201.6     1,788.6     26.6   (g)     1,814.7  

                            (0.5 ) (j)        
                               

Operating income (loss)

     49.8     34.2     45.4     95.2     (57.1 )       38.1  

Equity in (losses) income of unconsolidated affiliates

     (25.7 )   1.0     1.3     (24.4 )   (1.3 ) (f)     (24.3 )

                            1.4   (i)        

Other (expense) income, net

     (1.4 )   (0.3 )   (0.4 )   (1.8 )             (1.8 )
                               

Earnings (loss) from continuing operations before income taxes

     22.7     34.9     46.3     69.0     (57.0 )       12.0  

Income tax provision (benefit)

     32.1     13.0     17.3     49.4     (10.7 ) (g)     30.0  

                            (9.2 ) (g)        

                            0.5   (i)        
                               

(Loss) earnings from continuing operations

     (9.4 )   21.9     29.0     19.6     (37.6 )       (18.0 )

Net loss (earnings) attributable to noncontrolling interests

     4.8     —     —     4.8     (0.3 ) (f)     4.5  
                               

Net (loss) earnings from continuing operations attributable to IAC shareholders

   $ (4.6 ) € 21.9   $ 29.0   $ 24.4   $ (37.9 )     $ (13.5 )
                               

Per share information attributable to IAC shareholders:

                                          

Basic (loss) earnings per share from continuing operations

   $ (0.04 )                             $ (0.18 )

Diluted (loss) earnings per share from continuing operations

   $ (0.04 )                             $ (0.18 )

C-3


IAC/INTERACTIVECORP AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2011

(amounts in millions, except per share amounts)

 
   IAC
USD 		  Meetic
EURO 		  Meetic
USD 		  Subtotal
USD 		  Pro Forma
Adjustments
USD 		  Notes   Total
USD 		 
 
    
    
   Converted @ FX rate of 1.40321
    
    
    
    
  

Revenue

   $ 945.6   € 92.4   $ 129.7   $ 1,075.3             $ 1,075.3  

Costs and expenses

     850.1     84.0     117.9     968.0   $ 4.2   (g)     970.8  

                            (1.1 ) (h)        

                            (0.3 ) (j)        
                               

Operating income (loss)

     95.5     8.4     11.8     107.3     (2.8 )       104.5  

Equity in (losses) income of unconsolidated affiliates

     (10.6 )   0.8     1.1     (9.5 )   (1.1 ) (f)     (13.8 )

                            (3.2 ) (i)        

Other income (expense), net

     6.4     —     —     6.4               6.4  
                               

Earnings (loss) from continuing operations before income taxes

     91.3     9.2     12.9     104.2     (7.1 )       97.1  

Income tax provision (benefit)

     25.6     3.2     4.5     30.1     (1.4 ) (g)     27.6  

                            (1.1 ) (i)        
                               

Earnings (loss) from continuing operations

     65.7     6.0     8.4     74.1     (4.6 )       69.5  

Net (earnings) loss attributable to noncontrolling interests

     (0.9 )   —     —     (0.9 )   1.1   (f)     0.2  
                               

Net earnings (loss) from continuing operations attributable to IAC shareholders

   $ 64.8   € 6.0   $ 8.4   $ 73.2   $ (3.5 )     $ 69.7  
                               

Per share information attributable to IAC shareholders:

                                          

Basic earnings per share from continuing operations

   $ 0.72                               $ 0.78  

Diluted earnings per share from continuing operations

   $ 0.68                               $ 0.73  

C-4


IAC/INTERACTIVECORP AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

(amounts in millions, except per share amounts)

(a)
To reflect the Meetic Acquisition in the unaudited pro forma condensed balance sheet as if it had occurred as of June 30, 2011 and in the unaudited pro forma condensed statements of operations as if it had occurred as of January 1, 2010.

        The fair value of Meetic at the date of acquisition is as follows:

Purchase price per share

   € 15.0  

Total shares outstanding

     23.0  
       

  € 344.8  

Fair value of unvested stock awards attributable to pre-acquisition services

   € 4.7  
       
 

Acquisition date fair value in Euros

   € 349.5  

Exchange rate

     1.45  
       
 

Acquisition date fair value in US dollars

   $ 506.2  

Meetic's net assets at June 30, 2011

   $ 345.4  
       

Excess acquisition date fair value over net assets at June 30, 2011

   $ 160.8  
       

Meetic's fair value consists of the following components:

        
 

Cash Match paid for shares of Meetic pursuant to the tender offer

   $ 272.0  
 

Fair value of Match's previously held investment in Meetic accounted for under the equity method of accounting

     132.7  
 

Noncontrolling interest

     101.5  
       
   

Total

   $ 506.2  
       

Allocation of the fair value in excess of net assets:

        
 

Adjustment to deferred income tax assets

   $ 13.2  
 

Adjustment to indefinite-lived intangible assets

     98.2  
 

Adjustment to definite-lived intangible assets

     35.1  
 

Adjustment to long-term investments

     6.2  
 

Write-off of deferred revenue

     38.3  
 

Adjustment to deferred income tax liabilities

     (48.0 )
 

Adjustment to goodwill

     17.8  
       
 

Excess acquisition date fair value over net assets at June 30, 2011

   $ 160.8  
       
(b)
To adjust the carrying value of Match's investment in Meetic accounted for under the equity method to fair value based upon the tender offer price of €15.00 per share.

(c)
To record the payment of Match's transaction costs that were incurred subsequent to June 30, 2011.

(d)
To eliminate Meetic's equity method investment and Match's redeemable non-controlling interest in their jointly owned Latin American venture.

(e)
To reflect the transfer of unused escrow funds back to unrestricted cash upon the expiration of Match's tender offer.

C-5


IAC/INTERACTIVECORP AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS (Continued)

(amounts in millions, except per share amounts)

(f)
To reverse the equity income recorded by Meetic and the noncontrolling interest recorded by Match related to their jointly owned Latin American venture.

(g)
To record the effect of the write-off of Meetic's deferred revenue and the amortization of intangibles recorded in connection with the Meetic Acquisition and related income tax effects. The write-off of the deferred revenue is based on the deferred revenue balance at January 1, 2010.

(h)
To reverse the statement of operations impact of transaction costs incurred by Match during the six months ended June 30, 2011.

(i)
To reverse Match's equity in income of Meetic and related income tax effects.

(j)
To record the effects of a fair value adjustment to Meetic's stock awards as of January 1, 2010.

C-6



QuickLinks

IAC/INTERACTIVECORP AND SUBSIDIARIES UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
IAC/INTERACTIVECORP AND SUBSIDIARIES UNAUDITED PRO FORMA CONDENSED BALANCE SHEET JUNE 30, 2011 (amounts in millions)
IAC/INTERACTIVECORP AND SUBSIDIARIES UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2010 (amounts in millions, except per share amounts)
IAC/INTERACTIVECORP AND SUBSIDIARIES UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2011 (amounts in millions, except per share amounts)
IAC/INTERACTIVECORP AND SUBSIDIARIES NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS (amounts in millions, except per share amounts)