-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 ZF0EZKfI4BSBJDbWlRUz8A==

<SEC-DOCUMENT>0001179110-08-021313.txt : 20081219
<SEC-HEADER>0001179110-08-021313.hdr.sgml : 20081219
<ACCEPTANCE-DATETIME>20081219175901
ACCESSION NUMBER:		0001179110-08-021313
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081217
FILED AS OF DATE:		20081219
DATE AS OF CHANGE:		20081219

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MCINERNEY THOMAS
		CENTRAL INDEX KEY:			0001238039

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20570
		FILM NUMBER:		081262239

	BUSINESS ADDRESS:	
		STREET 1:		152 W 57TH STREET
		STREET 2:		42ND FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		2123147300

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IAC/INTERACTIVECORP
		CENTRAL INDEX KEY:			0000891103
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-RETAIL STORES, NEC [5990]
		IRS NUMBER:				592712887
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		152 WEST 57TH ST
		STREET 2:		42ND FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		2123147300

	MAIL ADDRESS:	
		STREET 1:		152 WEST 57TH ST
		STREET 2:		42ND FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERACTIVECORP
		DATE OF NAME CHANGE:	20030623

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USA INTERACTIVE
		DATE OF NAME CHANGE:	20020508

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USA NETWORKS INC
		DATE OF NAME CHANGE:	19980223
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-12-17</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000891103</issuerCik>
        <issuerName>IAC/INTERACTIVECORP</issuerName>
        <issuerTradingSymbol>IACI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001238039</rptOwnerCik>
            <rptOwnerName>MCINERNEY THOMAS</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O IAC/INTERACTIVECORP</rptOwnerStreet1>
            <rptOwnerStreet2>555 WEST 18TH STREET</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10011</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Options to Purchase Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>16.28</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-12-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>500000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-12-17</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2019-12-17</value>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $0.001</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>500000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>500000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents stock options granted under the Company's 2008 Stock and Annual Incentive Plan, which vest in equal installment over four years on the anniversary of the grant date, December 17, 2008.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Tanya M. Stanich as Attorney-in-Fact for Thomas J. McInerney</signatureName>
        <signatureDate>2008-12-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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