Barry Diller is expected to testify today in the Liberty Media-IAC (NSDQ: IACI) Delaware Chancery Court trial that could decide his fate as chairman and CEO of IAC, the company he built and plans to spin apart. At heart, this is about what happens when a builder’s foundation is based on OPM — other people’s money. We’ll have it all here, courtesy of Courtroom Live, which is doing the video webcast; truly paid content at $600 a day. (VOD is a mere $400 a day.)
Meanwhile, the morning has been devoted to testimony by IAC outside counsel Pamela Seymon of Wachtell, Lipton, Rosen & Katz over the meaning of various clauses, Diller’s intent in the split, etc. The suggestion from John Malone’s Liberty Media: the spin-off into a single-tier voting structure is Diller’s way of acquiring power and getting rid of Liberty. The counter-argument: Diller didn’t need to wrest power because he already had it via the voting rights assigned to him by Liberty.
Update: Efforts were made to resolve the situation, which never should have gone to court, pre-trial, and, during her testimony, Seymon spoke of continuing settlement discussions. I’d be surprised if this actually goes to the judge — hard to imagine Malone and Diller handing over control like that; then again, each man has surprised us before. WSJ has more. Court in recess after a brief appearance by another Wachtell partner.