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Barry Diller wins legal battle against Malone for IAC

Indiantelevision.com Team

(29 March 2008 3:00 pm)

MUMBAI: A Delaware Chancery Court judge has ruled in favour of IAC/InterActiveCorp CEO Barry Diller on Friday in the legal dispute with John Malone of Liberty Media Corp.

The development will allow Diller to proceed with proposed breakup of Internet media giant IAC.

The judge rules that Diller and six directors cannot be ousted by Liberty Media Corp chairman Malone, thereby thwarting Malone's effort to gain control of the Internet Company.

Liberty had sought Diller’s removal as his proposal to split IAC into five parts violated a proxy agreement giving him control of Liberty's majority voting power in IAC. However, judge Stephen Lamb decided Liberty had failed to prove Diller violated an agreement between them, and ruled that Diller is not required to get Liberty's approval for splitting up the company.

The decision has come after a five-day trial to settle dispute over the control of IAC.