Our target price for IAC is $14 due to undisclosed risks to the business
Simply put, IAC has been using their $1.6 billion Google search syndication partnership to do business with pirates. IAC is very selective in what companies they partner with. They don't do small deals. Like Perion, IAC is no stranger to working hand-in-hand with pirates with a direct distribution relationship with FrostWire, a notorious P2P file sharing software. The business model of FrostWire needs no explanation even to the average consumer. It's only purpose is to facilitate piracy. A button on the Ask toolbar for FrostWire allows the user to launch FrostWire with one-click. It might be possible to argue that this is an isolated incident, but FrostWire is not the only P2P software that IAC is working with.