IAC has an activist investor, and will add a new board member after engaging in talks with the investment firm.
The Barry Diller-led conglomerate says that Tor R. Braham will join its board after the company had “constructive engagement” with the firm Arkhouse Management. The company also says that it will adopt a director resignation policy “for nominees who receive less than a majority of votes cast in uncontested director elections,” a move that could portend further changes to the board down the line.
“We look forward to welcoming Tor Braham to the Board,” said IAC board nominating committee chair Bonnie Hammer in a statement. “We believe Mr. Braham’s background in technology and capital markets as well as his board service experience will be valuable as IAC continues to execute its strategy.”
“We’ve enjoyed the open, thoughtful dialogue with IAC and are confident that Tor Braham will be a strong addition to the boardroom as the Company works to create value for all shareholders,” added Gavriel Kahane, Managing Partner at Arkhouse.
Braham, a former technology banker at Deutsche Bank and Credit Suisse, also serves on the boards of Viavi Solutions and A10 Networks.
Arkhouse is a “significant shareholder” in IAC, and is said to have been focused on a disconnect between IAC’s market value and the value of its underlying assets. In particular, IAC’s stake in casino giant MGM has been a flashpoint for investors, with the book value of that stake of similar scope to IAC’s total market cap.
The firm has traditionally operated in the real estate sector, though the firm added Elliott Management veteran Richard Mansouri to help it expand its purview earlier this year.
Diller has been running IAC himself since earlier this year when former CEO Joey Levin exited. Diller now has the business leaders reporting directly to him. IAC’s assets included stakes in companies like MGM and Turo, as well as ownership of assets like Dotdash Meredith and Care.com.
Activists appear to be circling companies with exposure to the media business amid an uncertain macroeconomic environment, with Warner Bros. Discovery also adding a new board member last month after facing pressure from Sessa Capital.