Question-and-Answer Session
Operator
Absolutely. (Operator Instructions). And we'll go first to Robert Peck with Bear Stearns.
Robert Peck - Bear Stearns
Hi I have two quick questions. The first, Greg, is for you. Could you give us little more color around the IAC spend and what the implications are for Liberty. Are there any sort of tax implication that was going to stop any deal being done for a swap for HSN? And could you also talk about how your voting rights would be applied to be various businesses? Then I have a follow up for Mike.
Greg Maffei
Thank you Robert. I think to a large degree many of the answer to those questions are all no. I don't believe there are any tax implications from the spin itself. A question of how we redeemed or traded our stock for positions in one or the other of operating businesses including potentially HSN, it could be more attractive. We can't really do that before a spin. You can come up lots of scenarios. But, we know we played our hand and had our dialog with Barry about potential transactions prior to the spin and haven't reached provision. So, we'll continue that dialog heading into the spin and see where we end up.
As far as where our super vote goes and where Barry's proxy goes, it's complicated. It's somewhat related to where Barry is still CEO and what we negotiate with him. So, I have to tell you that I think we are going to a negotiation phase, and where we come at the other side, I can't predict which businesses will be ultimately owned, consolidated, held at all by Liberty or frankly by CREs.
So, I think the fact that it's happening will create opportunities, but I don't know exactly where they are going to go in from the relationship. Mostly, I think it's going to show and continue to increase the value at IAC and that's a positive for us. John, you want to add anything on that.
John Malone
No, I think it's terrific for us. Each one of these businesses will now have clear dependant management for the most part and whether we increase, decrease or what relationship Liberty has with each one of these units will be determined, I would guess, over the next six months. But, I think it represents great opportunity for Liberty and frankly for IAC shareholders generally to focus their investment and their interests in the areas that they think closer than the most. It also creates the possibility of capital structures in each one of these businesses to take advantage of their particular cash flow and tax faster.
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