IAC consolidates into People Inc. as core operating business, with AI licensing deals and MGM stake as capital priorities

IAC completed its transformation by selling Care (closed in March), winding down its search business, and consolidating corporate operations into People Inc., which now operates as the company's single core operating business alongside an MGM stake.

People Inc. derives 70% of revenue from digital media (90% of profitability), with 41% of revenue now classified as non-session-based—meaning revenue not tied to website visits—which grew 24% in the first quarter. Non-session revenue includes content distribution through platforms like Apple News, off-platform advertising, AI licensing agreements, and events.

People Inc. signed an 'all you can eat' style licensing deal with OpenAI allowing the AI company to train on, display and use People Inc. content. A second model around pay-per-use licensing is emerging, with current discussions increasingly focused on pricing.

IAC repurchased 13% of the company over the past 15 months for more than $400 million and bought about 1 million MGM shares in each of the last two quarters, now owning 26% of MGM. Capital allocation is focused on three priorities: buying back IAC stock, increasing MGM exposure, and pursuing strategic acquisitions through People Inc.