Liberty agrees to IAC breakup, drops legal action

Liberty, which had appealed a court decision giving way to the breakup, said it had dropped that request, according to a statement.

"I am pleased that we were able to amicably resolve our dispute with IAC," said John Malone, Liberty's Chairman. "Liberty supports the proposed restructuring of IAC and looks forward to the ongoing success of each of the new entities and IAC."

It had initially opposed that IAC's move because it alleged it would have lost some of its voting power in the new companies which had single-tier stock structures.

IAC consists of Home Shopping Network, Interval International, Ticketmaster and Lending Tree.

The companies made arrangements regarding to Liberty's right to board representation on each company and a standstill agreement, which limits Liberty's ability to boost its ownership stakes in the companies.

"Now it's really over and that's great for both of us," said IAC Chairman and Chief Executive Barry Diller.

Further details would be available later through securities filings, the companies said.