Barry Diller's Web Gaming Play

Barry Diller's IAC/InterActiveCorp (IACI) is entering yet another arena. The Web conglomerate, owner of businesses such as Ticketmaster.com and the dating site Match.com, announced Sept. 18 that it has acquired a majority interest in GarageGames.com, a game publisher and provider of programming tools for indie game developers.

The acquisition, which will lay the foundation of a new division focused on Web-based gaming, marks the latest and biggest move in IAC's bid to become a major player in that market. In the past few months, IAC has snared several video gaming executives from rivals, including Nicholas Lehman from Viacom (VIA). "We think this is an untapped $2 billion market today growing to $5 billion in three years," says Shana Fisher, IAC's senior vice-president of strategy and mergers and acquisitions. "This is a once-in-a-lifetime market opportunity, we think. And we are investing appropriately."