UPDATE 1-IAC to spend $100 million expanding in China
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BEIJING, Nov 23 (Reuters) - Internet conglomerate IAC/InterActiveCorp (IACI.O) plans to spend $100 million within a year to expand its presence in China, Chairman and Chief Executive Barry Diller said on Friday.
IAC, home to more than 60 Internet brands from search site Ask.com to dating service Match.com, said earlier this month it would spin off four of its biggest divisions to better capitalise on opportunities in Web media and services.
"We certainly have enough capital to do damage," Diller told reporters in Beijing when asked about the firm's plans to expand in China. "I think about $100 million," he said, referring to the size of the investment.
IAC has already invested $200 million in China, spearheaded by its U.S. online travel agency Expedia Inc (EXPE.O), which has a majority stake in the mainland's eLong Inc (LONG.O).
Diller said he would consider buying an existing company but would prefer to establish a new business, perhaps by backing a Chinese entrepreneur.
"Creating the environment where flowers will come up ... I much prefer that than buying someone else's business," he said.
Diller did not provide many details about the investment plans, however, saying only that China's booming online gaming industry was an area of interest and that within two years he would like to bring search unit Ask.com -- formerly Ask Jeeves
-- into China. -- into China.
"There is no question gaming, particularly on the model we are starting in the U.S. next month, is one of the earliest things that I would like to pursue," said Diller.
IAC has acquired a majority stake in GarageGames and together they are launching InstantAction.com, the first Web-based videogame network in the United States.
IAC has 50 developers based in the eastern Chinese city of Hangzhou, working mostly for Ask.com, and will add another 35 this year, said the executive.
IAC also recently signed a five-year advertising deal with Web search leader Google Inc (GOOG.O) to provide sponsored search listings for its Web properties, a deal that it said would yield in excess of $3.5 billion in advertising revenue for the company.
(US$=7.41 yuan)
(Reporting by Kirby Chien; Editing by Edmund Klamann)
((alan.wheatley@reuters.com; +86 10 6627 1235; alan.wheatley@reuters.com@reuters.net)) Keywords: IAC DILLER/CHINA
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