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I've owned IACI for at least a year now and I've constantly read about what a "cash machine" the company is. I've never understood why the market doesn't appreciate this stock more.

I've also read repeatedly that Diller spent more than $20 billion assembling the components for IAC. Yet after yesterday's run-up, the market cap is still only $9.5 billion.

Is Diller crazy and just seriously overpaid for IAC's component companies -or- is Wall Street totally blind to the combined value of the conglomerate?

I suppose that possibly the $20 billion figure includes Expedia, which is not included in the current market cap.

Finally, if Diller did pay $20 billion for the current IACI (figure doesn't include Expedia) and the market cap is only $9.5 billion, does that indicate that initial IACI investors have watched the value of their investments drop by half?

Thanks for any help understanding this...
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