IAC Inc. (IAC): Business Model Canvas [Dec-2025 Updated]

You're looking at IAC Inc. and wondering how this complex holding company is actually making money now that it's pivoting hard into capital allocation and AI content licensing; it's defintely not a simple media play anymore. Here's the quick math: they are sitting on about $1.0 billion in cash and a $2.1 billion stake in MGM Resorts, all while signing major IP licensing deals with platforms like Meta and Microsoft to monetize their content. This Business Model Canvas maps out exactly how IAC is managing its iconic brands, rotating assets, and cutting costs-targeting $60 million in annual savings-to land their 2025 Adjusted EBITDA guidance between $234 million and $258 million. Keep reading below to see the full nine-block structure driving their current strategy.

IAC Inc. (IAC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep IAC Inc. moving, especially as they navigate the AI shift. These aren't just casual connections; they are material financial and strategic anchors for the business, particularly for People Inc. (the rebranded Dotdash Meredith).

The AI content licensing front is clearly a major focus, showing a pivot to monetize content quality directly from large language model developers. People Inc. has secured multi-year commercial agreements with key players. They have a deal with Microsoft to feed its pay-per-usage AI content marketplace, where Microsoft's Copilot assistant is the initial buyer. This is structured as an "a la carte" model, which contrasts with the "all you can eat" lump sum agreement they have with rival OpenAI. This strategy is already showing up in the financials; Licensing and other revenue for People Inc. increased 23% in Q2 2025, which included a full quarter of OpenAI revenue from their partnership that started in May 2024. Furthermore, a new multi-year content partnership with Meta was announced in December 2025, making People Inc. the first lifestyle publisher to supply real-time content to Meta AI.

The strategic investment in MGM Resorts International remains a significant, non-operational partnership. As of July 28, 2025, IAC held 64.7 million shares, equating to a 24% stake in MGM Resorts International. This holding was valued at approximately $2.1 billion as of May 2, 2025. Remember, IAC initially established this position in August 2020 with a stake worth over $1 billion.

Affiliate commerce partners are directly fueling growth in the performance marketing engine within People Inc. Performance marketing revenue saw a solid increase of 14% in Q2 2025. The primary driver for this was a 25% growth in affiliate commerce revenue streams.

Here's a quick look at how the key revenue-driving partnerships are stacking up financially, based on the latest reported figures:

Even with the strategic AI deals, Google remains a major, albeit challenged, distribution partner. The impact of Google's AI Overviews is definitely being felt; the portion of traffic coming from Google Search has dropped to 24% in the past quarter, down significantly from 54% just two years prior. Some internal reporting suggests the decline in sessions from Google Search specifically went from 52% to 28%. This traffic erosion hit the Search segment hard, with its revenue nosediving 41% year-over-year in Q3 2025. Still, Google Search revenue for People Inc. was $81.5 million in Q3 2025, with $51.4 million specifically from Search, showing it's still a material channel.

You should track the growth rate of that affiliate commerce 25% against the continued decline in Google traffic share.

IAC Inc. (IAC) - Canvas Business Model: Key Activities

You're looking at how IAC Inc. (IAC) is actively managing its portfolio businesses as of late 2025. The key activities center on nurturing its largest asset, People Inc., while aggressively managing capital structure and cost bases.

Developing and publishing premium digital and print content (People Inc.)

The People Inc. segment, formerly Dotdash Meredith, remains the core engine, showing resilience in digital while print contracts. You see this in the latest quarterly figures. For the third quarter of 2025, the digital side brought in $269 million in revenue, marking a 9% increase year-over-year. This growth was powered by specific areas; performance marketing jumped 38%, and licensing revenue grew 24% in Q3 2025. Conversely, advertising revenue saw a 3% decrease, tied to a 6% decline in Core Sessions, which management links to the rise of Google AI Overviews. Print revenue for the third quarter was $174 million, down 7% from the prior year. Still, digital profitability is improving, with Digital Adjusted EBITDA reaching $72 million in Q3 2025. The segment ended September 30, 2025, with $280 million in cash and $1.45 billion in long-term debt obligations.

Here's a quick look at the People Inc. revenue mix from Q2 2025:

The company is actively managing the print side, with a Q4 outlook projecting a decline of -20% to -25% for Print revenue.

Strategic capital allocation, including share buybacks and M&A

IAC Inc. (IAC) is clearly prioritizing returning capital to shareholders, viewing its stock as undervalued relative to its assets. In the third quarter of 2025 alone, the company repurchased 2.8 million shares for an aggregate of $100 million. Year-to-date through Q3 2025, this totaled 7.3 million shares bought back for $300 million. This follows a significant $200 million repurchase in Q1 2025 (4.5 million shares). The Board approved an additional authorization of 10 million shares on March 16, 2025. The value of the MGM Resorts International (MGM) stake is a key part of this strategy; as of October 31, 2025, IAC owned 64.7 million shares, representing a 24% stake, valued at approximately $2.1 billion. Total corporate cash stood at $1.0 billion as of September 30, 2025, with $725 million held directly at the parent company level.

Operating digital marketplaces for specialized services (e.g., Care.com)

The specialized services marketplaces, particularly Care.com, are a focus area, though facing near-term headwinds. Care.com reported revenue of $89 million and an Adjusted EBITDA of $14 million in the first quarter of 2025. By the second quarter, Consumer revenue was $43.4 million (a 9% year-over-year decline) and Enterprise revenue was $38.6 million. Management's outlook for Q4 suggests continued pressure, with Care.com revenue expected to decline by -7% to -9%.

Investing in proprietary ad technology like D/Cipher+ for first-party data

Investment in ad technology is critical to counter the impact of AI Overviews on search traffic. Jim Lawson was appointed President of D/Cipher on March 17, 2025, to accelerate the expansion of this intent-driven contextual data platform beyond DDM's owned inventory to the entire open web. This focus is paying off in licensing revenue, which grew 30% in Q1 2025 and 24% in Q3 2025. Furthermore, People Inc. secured a deal as a premier publisher for Microsoft's Publisher Content Marketplace, validating paid content models for AI use.

Reducing corporate costs and rationalizing the business structure

Cost reduction is a stated key activity, especially following the spin-off of Angi Inc. on March 31, 2025. The company has implemented workforce reductions expected to save $60 million annually. Pro forma, corporate costs declined by 15% in the third quarter of 2025. These actions helped boost profitability metrics despite revenue pressures. For Q3 2025, Total Adjusted EBITDA was reported at $65 million, which would have been $75 million when excluding specific severance-related costs. The segment also absorbed $21 million in legal fees and settlement expenses related to concluded litigation in Q3.

• Total corporate cash (9/30/2025): $1.0 billion.
• IAC cash held at parent (9/30/2025): $725 million.
• Angi spin-off completed: March 31, 2025.
• Annualized cost savings from workforce reduction: $60 million.

IAC Inc. (IAC) - Canvas Business Model: Key Resources

You're looking at the core assets powering IAC Inc. (IAC) operations as of late 2025. These are the things the company owns or controls that are essential to delivering its value propositions.

The resource base is a mix of established media properties, significant financial holdings, and internal technological capabilities.

• Iconic media brands, including PEOPLE, Allrecipes, Investopedia, plus another 37 distinct properties.
• A significant financial asset in the form of the MGM stake, valued at $2.1 billion as of late 2025.
• Substantial liquidity, reported at approximately $1.0 billion in cash and equivalents as of Q3 2025.
• Proprietary technology platforms and the first-party consumer data collected across its network.
• Large Net Operating Losses (NOLs) available, totaling $800 million, which can offset future taxable gains.

Here's a quick breakdown of the key financial and asset components you need to track:

The technology platforms represent deep institutional knowledge in areas like digital publishing and consumer engagement, underpinning the performance of the media assets. Honestly, that combination of brand recognition and proprietary data is what makes the whole structure work.

The NOLs of $800 million are a critical, though non-operational, resource for future tax planning. What this estimate hides is the exact timeline for utilizing these losses against taxable income.

You should keep an eye on the composition of the 40 media brands, as their individual performance drives the underlying value of the portfolio. Finance: draft 13-week cash view by Friday.

IAC Inc. (IAC) - Canvas Business Model: Value Propositions

Trusted, human-expert content for entertainment and information (People Inc.)

People Inc. is the largest digital and print publisher in America. More than 175 million people trust People Inc. each month to help them find inspiration, make decisions, and take action. People Inc.'s more than 40 iconic brands include PEOPLE, Food & Wine, Better Homes & Gardens, Verywell Health, Allrecipes, REAL SIMPLE, Investopedia, and Southern Living. The portion of People Inc. sessions coming from Google Search declined from 52% to 28% between Q2 2023 and Q2 2025. Off-platform views grew significantly, reaching 14,699 million in Q2 2025, representing a 24% Compound Annual Growth Rate (CAGR) from Q2 2023.

People Inc. delivered 9% Digital revenue growth in Q3 2025. Digital Adjusted EBITDA for Q3 2025 was $72 million (excluding severance-related costs), representing margins of 27%. Full-year Digital revenue guidance for People Inc. remains at 7% to 10%.

Efficient connection of families to caregivers (Care.com)

Care.com is the largest online platform for finding and managing family care. For the twelve months ended June 30, 2025, Care.com generated approximately $360 million in revenue. In Q2 2025, Consumer revenue was $43.4 million and Enterprise revenue was $38.6 million. IAC maintained its full-year guidance for Care.com Adjusted EBITDA at $45 million to $55 million, with a projected Q3 2025 Adjusted EBITDA of $11-13 million. Research indicates that 83% of those who pay for family care say the challenge of balancing care responsibilities with work responsibilities exacerbates risk of burnout. Nearly 1 in 5 employees (19%) have left their job because they weren't offered family care benefits.

High-intent, scaled audience for premium and performance advertisers

IAC's total Q3 2025 revenue was $589.8 million. People Inc.'s Digital revenue in Q3 2025 was $269 million, driven by Performance marketing and Licensing growth. In Q2 2025, People Inc.'s Digital revenue was $260.4 million, up 9% year-over-year. The monetization mix for People Inc. Digital revenue in Q2 2025 was:

People Inc. Q2 2025 Performance marketing revenue was $61.1 million, showing 14% growth, and Advertising revenue was $161.2 million, up 5%.

Monetization of intellectual property through AI licensing agreements

People Inc. is accelerating its content partner strategy across major AI platforms. People Inc. announced a strategic content partnership with Meta in December 2025, making it the first lifestyle publisher to make real-time content available to Meta AI users. This follows commercial agreements with OpenAI and Microsoft. Content licensing royalties are earned from relationships including utilization in large-language models and other artificial intelligence-related activities. People Inc. Q2 2025 Licensing revenue grew 23% year-over-year, representing 15% of its digital revenue for that quarter. The company completed a $1.4 billion refinancing at People Inc. in Q2 2025.

Finance: review the Q4 2025 cash flow forecast against the $325 million to $340 million consolidated Adjusted EBITDA guidance by next Tuesday.

IAC Inc. (IAC) - Canvas Business Model: Customer Relationships

Direct-to-consumer focus is central to People Inc., which reported its eighth consecutive quarter of Digital revenue growth in Q3 2025. People Inc.'s Q3 2025 Digital revenue reached $269 million, while its Print revenue declined 15% to $169 million in the same period. The company is actively diversifying traffic through investments in owned-and-operated, off-platform, and syndicated audiences.

For advertisers, the relationship is segmented between direct advertising and performance marketing channels. In Q2 2025, People Inc.'s Advertising revenue was $161.2 million, and Performance marketing revenue was $61.1 million. The data targeting product, D/Cipher, is addressable to approximately half of People Inc.'s digital advertising revenue, which was $640 million in a recent period. Campaigns utilizing D/Cipher are showing 25% growth, compared to 5% growth for non-D/Cipher campaigns. Licensing and other revenue saw a 23% increase in Q2 2025, partly due to a full quarter of OpenAI revenue from a partnership that began in May 2024.

The product-led approach at Care.com is undergoing a revitalization, marked by a product and brand relaunch in June 2025. Care.com's Q3 2025 revenue was $90.8 million, with Adjusted EBITDA of $7.8 million. The enterprise segment faces revenue pressure due to corporate belt tightening. Research from a January 2025 Care.com report indicated that the average parent surveyed spends 22% of household income on child care, rising to 40% when including senior care, adult care, and housekeeping.

Community and brand loyalty are key for iconic media properties, as evidenced by People Inc.'s strategy following its rebrand from Dotdash Meredith. The company secured a deal with Microsoft to be a launch partner for its Publisher Content Marketplace (PCM), a system designed to compensate publishers for content use by AI players.

• People Inc. has had eight consecutive quarters of Digital revenue growth as of Q3 2025.
• The company repurchased 2.8 million common shares for an aggregate of $100 million between August 6, 2025, and October 31, 2025.
• Year-to-date through October 31, 2025, IAC repurchased 7.3 million common shares for an aggregate of $300 million.
• As of September 30, 2025, IAC held $725 million in cash and cash equivalents, with People Inc. holding $280 million.

IAC Inc. (IAC) - Canvas Business Model: Channels

You're looking at how IAC Inc. (IAC), primarily through its People Inc. segment, pushes its content and services to the end-user as of late 2025. The channel strategy is clearly pivoting toward digital and AI syndication, even as legacy print assets persist.

The core owned-and-operated digital properties, which include brands like PEOPLE, Allrecipes, and Investopedia, are the foundation. People Inc. reported that its Digital revenue reached $260 million in Q2 2025 and $269 million in Q3 2025. This segment has seen growth for eight consecutive quarters.

The distribution mix is shifting dramatically away from traditional search dependency. As of Q2 2025, sessions coming from Google Search had declined to 28% of the total, down from 52% previously, while non-Google Search sessions grew at a 29% CAGR.

Off-platform distribution is a major growth driver. In Q3 2025, off-platform revenue accounted for over one third of the total revenue for People Inc.. This channel accelerated off-platform audience growth by 66% year-over-year in Q3 2025, with the off-platform revenue segment itself growing by 16% in that quarter.

The print publications for legacy media brands still contribute, though their role is diminishing. In Q2 2025, Print revenue was $174 million, representing a 9% decrease year-over-year. By Q3 2025, the print revenue decline worsened to 15% compared to the prior year. People Inc. claims to reach more than 175 million people monthly across its portfolio of over 40 brands.

New AI platforms represent a critical, emerging channel for content syndication and monetization. People Inc. became the first lifestyle publisher to integrate real-time content directly into Meta AI via a multi-year partnership. This follows earlier commercial agreements with OpenAI and Microsoft. The Microsoft agreement involves a pay-per-use market where AI players compensate publishers for content use.

Here's a quick look at the People Inc. revenue and channel performance metrics from the most recent reported quarters:

The company's strategy involves leveraging its scale across these channels. For example, the Meta AI deal includes brands like PEOPLE, Allrecipes, InStyle, Food & Wine, Better Homes & Gardens, Southern Living, and Verywell Health.

You should note that Vimeo, a former major channel, was acquired by Bending Spoons in November 2025 for $1.38 billion, meaning it is no longer part of the IAC channel ecosystem.

Finance: draft 13-week cash view by Friday.

IAC Inc. (IAC) - Canvas Business Model: Customer Segments

You're looking at the customer base for IAC Inc. (IAC) as of late 2025, which is a portfolio of distinct businesses facing unique market dynamics. Here's the breakdown of who they serve, grounded in the latest reported figures.

The largest group of customers comes from the digital and print advertising world, primarily through the People Inc. segment (the rebranded Dotdash Meredith portfolio). This segment is the largest digital and print publisher in the United States, reaching over 50% of the U.S. population monthly. They serve advertisers looking for both brand exposure and direct results. For instance, in Q3 2025, People Inc. saw its digital revenue grow by 9%, with Digital Adjusted EBITDA hitting $72 million in that quarter. This audience is also being monetized via new channels, such as the AI licensing deal signed with Microsoft for its Copilot assistant.

Mass-market consumers represent another core segment, though this group is increasingly fragmented by technology shifts. These users seek lifestyle, finance, and health information across IAC's content properties. However, this segment is heavily impacted by changes in search behavior; for example, traffic from Google search dropped significantly, moving from 54% to just 24% of total traffic in Q3 2025, which directly contributed to the Search unit's revenue declining by 41% in the same period. Overall, IAC's total revenue for Q3 2025 was reported at $589.8 million.

The families and professional caregivers segment is served by Care.com. This platform connects users with providers for childcare, senior care, and home needs. In Q3 2025, the Care.com segment revenue fell by 5%, attributed to lower subscription volumes on the platform. To give you a sense of scale from the prior quarter, Care.com's Q2 2025 revenue totaled $82 million. A key part of this segment is the enterprise side, Care for Business, which supports over 630 employers, including many Fortune 100 companies, looking to offer family care benefits to their workforce.

Finally, the financial community, comprising institutional investors and potential M&A targets, is a critical segment for capital allocation and portfolio management. Management has been actively managing shareholder capital; year-to-date through Q3 2025, IAC had repurchased $300 million in shares. At the time of the Q3 report, IAC's market capitalization stood at $2.58 billion. A significant portion of IAC's asset base is its investment in MGM Resorts International, where IAC owned 64.7 million shares, representing a 24% stake, valued at $2.3 billion as of August 1, 2025.

Here's a quick look at the revenue contribution from the main operating segments based on Q2 2025 data, which helps frame the customer base size:

The customer base for the content properties is broad, but the revenue mix is shifting, as you can see from the performance metrics:

• Premium Brand Advertisers: Served by People Inc. brands; Digital revenue grew 9% in Q3 2025.
• Performance Marketing Buyers: Also served by People Inc.; Performance marketing revenue grew 14% in Q2 2025.
• Care Seekers (Families/Individuals): Core users of Care.com; Subscriptions are a key revenue driver, which saw a Q3 2025 decline.
• Enterprise Clients (Employers): Customers of Care for Business; Over 630 employers utilize their benefits solutions.
• Capital Markets: Focused on share value; IAC completed a buyback of nearly 2.8 million shares recently.

Finance: draft 13-week cash view by Friday.

IAC Inc. (IAC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drain cash for IAC Inc. as of late 2025. The cost structure is heavily influenced by restructuring efforts and significant one-time legal expenses, alongside the ongoing operational burn for content and technology.

The company is actively working to become leaner. Management has signaled an expected $60 million in annual savings resulting from a recent workforce reduction, which is part of a broader strategy to slim down the corporate overhead. This cost-cutting is a direct response to market pressures, including headwinds in Google search traffic.

Content creation and editorial staff compensation is a major component, primarily within People Inc. While specific compensation figures aren't itemized, the focus is on monetizing this content, evidenced by the agreement with Microsoft for its Publisher Content Marketplace, which is essentially a pay-per-use model for AI players to compensate publishers for content use.

Technology and product development investment is channeled into digital pivots, such as the acquisition of Feedfeed by People Inc. to expand its social food audience and advertising capabilities. The company is also focused on diversifying revenue sources away from reliance on traditional search traffic.

Marketing and customer acquisition costs are particularly relevant for Care.com. In Q3 2025, Care.com revenue was $90.8 million, with Consumer revenue at $44.5 million, down 4%. This segment's profitability was impacted by nonrecurring charges.

The cost structure in Q3 2025 was significantly hit by non-recurring items related to restructuring and legal matters. Here is a breakdown of those specific charges:

These one-time items heavily impacted reported profitability. For instance, Q3 2025 Adjusted EBITDA was reported at $29.1 million, but excluding these items, it would have been $64 million or $72 million pro forma. Furthermore, corporate costs, which are part of the overhead structure, declined by 15% pro forma.

The overall financial impact of these cost actions can be seen in the context of the period's performance:

• Q3 2025 Total Revenue was $589.8 million.
• Q3 2025 GAAP operating loss was $20.4 million.
• People Inc. Digital Revenue was $269.0 million, up 9%.
• People Inc. Digital operating income rose 22% to $37.5 million.
• IAC repurchased 2.8 million common shares in Q3 for an aggregate of $100.0 million.

Finance: draft 13-week cash view by Friday.

IAC Inc. (IAC) - Canvas Business Model: Revenue Streams

You're looking at how IAC Inc. (IAC) is pulling in cash as of late 2025, which is heavily weighted toward its People Inc. segment, formerly Dotdash Meredith. The digital side is the clear engine here, showing consistent momentum even as other areas face headwinds. People Inc. Digital revenue increased 9% year-over-year in Q3 2025, hitting $269 million. This digital strength is coming from a few key places, not just traditional ads. Performance marketing revenue within that segment grew 38% in Q3 2025, and licensing revenue saw a 24% jump.

The content licensing stream is becoming a more defined part of the revenue mix, especially with the rise of generative AI. People Inc. has signed a deal with Microsoft to be a premier publisher in its Publisher Content Marketplace (PCM), which compensates publishers for content use by AI players like the Microsoft Copilot assistant. They also have a content deal with OpenAI. This focus on monetizing intellectual property is a direct response to traffic shifts away from organic search.

On the other side of the People Inc. coin, the legacy print business continues to shrink, which you'd expect. Print advertising and circulation revenue declined 9% in Q2 2025, coming in at $173.5 million. Looking ahead to Q4 2025, the guidance suggests an even steeper drop for Print, projected between 20% and 25%.

For Care.com, the subscription and transaction fees stream is showing softness. In Q2 2025, Care.com revenue dropped 6% to $82 million, and the Q3 2025 outlook projected revenue declines between 4% and 7%. Still, management is maintaining the full-year 2025 Adjusted EBITDA guidance for Care.com in the range of $45 million to $55 million.

Overall, the consolidated picture for IAC Inc. shows a recalibration of expectations. The full-year 2025 Adjusted EBITDA guidance has been tightened down to a range between $234 million and $258 million. This is a reduction from the prior forecast, which had been set between $247 million and $285 million.

Here's a quick look at the segment-level performance that feeds into those revenue streams, using the latest reported or guided figures for context:

The growth in licensing revenue at 24% in Q3 2025 is a key indicator of success in monetizing content outside of traditional ad impressions. Also, remember that People Inc. Digital Adjusted EBITDA grew 9% in Q3 2025, hitting $72 million at a 27% margin. That's the kind of operational leverage you want to see in a digital business.