IAC to Provide Expedia With $250 Million

IAC/InterActiveCorp, billionaire Barry Diller’s Internet company, will give $250 million in cash to its Expedia unit to provide it with capital when it is spun off as a public company.

Expedia, which will consist of travel businesses Hotels.com, Hotwire, Expedia.com and other websites, will have a revolving credit line of $500 million at the time of the spinoff, New York-based IAC said in a filing Monday with the Securities and Exchange Commission.

Diller on Dec. 21 said he would split IAC into two companies by giving shareholders Expedia stock and leaving Ticketmaster, Home Shopping Network and other companies under IAC. The company has said Expedia will have adequate funding but IAC will retain most of its cash.

IAC shares rose 40 cents to $21.29 on Nasdaq.