People Incorporated Common Stock NASDAQ: PPLI is focusing its capital allocation on its MGM minority stake and its People media business while seeking new homes for several non-core assets, Chief Financial Officer Tim Quinn said during a fireside chat.
Quinn said the former IAC has identified MGM and People, its publishing and media operation, as its core assets. The company plans to direct capital toward share repurchases and potential acquisitions related to People, while evaluating dispositions of majority-owned Vivian Health and The Daily Beast, as well as its minority investment in car-sharing company Turo.
“We feel pretty well-positioned to continue to monetize non-core assets and redeploy that money into the core,” Quinn said. He added that the company is not under pressure to sell Vivian or The Daily Beast at an uneconomic price.
MGM Offer and Other Assets
People Inc. submitted an offer on June 1 to acquire the remaining MGM stake alongside other equity investors, Quinn said. He noted that Barry Diller had said the company expected a resolution within 60 days, though Quinn said he could not provide further details because the proposal is being reviewed by a special committee.
People Inc. has held MGM shares for six years and considers the company undervalued, according to Quinn. If the transaction does not proceed, he said People Inc. would continue buying back its own shares and could opportunistically increase its MGM position.
On Turo, Quinn said the business delivered another strong quarter and has been producing growth alongside profitability. He said an initial public offering would be the preferred exit route, though a private sale could also be considered. Quinn said Turo, Vivian Health and The Daily Beast are each worth more today than they were a year ago, in his view.
Digital Business Shifts Beyond Search
Quinn said People’s digital strategy has been reshaped by declining referral traffic from Google Search as artificial intelligence changes how consumers access information. Google accounted for 21% of the company’s traffic, down from about 65% “not too long ago,” he said.
The company divides digital revenue into session-based and non-session-based categories. Session-based revenue, which comes from visitors to its websites, represented 57% of digital revenue in the latest quarter and was down 1% year over year, Quinn said. Non-session-based revenue accounted for 43% and rose 19% in the first half.
- Non-session-based revenue includes events, social content and audiences, licensing, and D/Cipher advertising-targeting capabilities.
- People Inc. is investing most heavily in these areas as it seeks more direct consumer and advertiser relationships.
- The company’s current digital revenue outlook calls for mid- to high-single-digit growth, but its longer-term goal remains double-digit growth.
Quinn said new brand-led initiatives, including membership programs and other direct-to-consumer offerings, could become meaningful collectively if replicated across multiple brands. He cited Southern Living as an example of a brand where a membership program could materially improve growth.
Advertising, Commerce and Licensing
Quinn described the advertising market as “more healthy than not,” though uneven across categories. He said People Inc. sees strength in some sectors but softer spending in inflation-sensitive categories and food and beverage companies facing structural changes.
The company’s performance marketing revenue rose 13% in the quarter, primarily reflecting its affiliate commerce operation. Quinn said People Inc. sends more than $1 billion in retail gross merchandise volume to retailers including Amazon, Nordstrom and Wayfair. He expects growth in that business to moderate in the second half due partly to more difficult comparisons and the timing of Amazon’s Prime Day.
Licensing was the company’s fastest-growing revenue category, rising 20% in the quarter. Quinn said licensing includes distribution arrangements with platforms such as Apple News, Yahoo, AOL and NewsBreak; product licensing, including Better Homes & Gardens’ relationship with Walmart; and content agreements with AI companies.
People Inc. has agreements with OpenAI and Meta, but not with Google or Anthropic, Quinn said. He said the company believes high-quality publisher content should be compensated both by foundational AI model providers and by applications that use content on a pay-per-use basis. People Inc. also has an agreement with Microsoft related to the application layer, he said.
Google Claims, Margins and Print
Quinn distinguished the company’s AI licensing concerns from its litigation related to Google’s advertising technology business. He said the government found Google abused market power in ad technology, and People Inc. is among parties pursuing claims. The company expects the matter to extend into 2027 and has publicly described its anticipated restitution claim as being in the nine figures, Quinn said.
He said People Inc. has spent roughly $10 million to $15 million on the litigation so far and expects to spend about $15 million this year. The company believes any eventual recovery would be “many multiples” of its legal spending, though no settlement amount or timing was provided.
Digital adjusted EBITDA margin expanded to 26% from 23% in the second quarter. Quinn said the company expects digital EBITDA margin expansion of roughly 30% to 40% for the full year, supported by higher-margin licensing and performance marketing revenue, as well as efficiencies in content production. He said the company is using AI tools to reduce costs while maintaining human-created content.
Print revenue declined 16% in the quarter, while print adjusted EBITDA totaled $9 million. Quinn said the company expects print EBITDA to remain in the high-$30 million to $40 million annual range for the foreseeable future, with the second and third quarters representing the low point of the year. He also said corporate costs are expected to decline to a $45 million annual run rate by the second quarter of next year, from roughly $100 million previously.
About People Incorporated Common Stock (NASDAQ:PPLI)
IAC NASDAQ: IAC is a publicly traded holding company headquartered in New York City that builds and invests in consumer-focused internet businesses. Through its portfolio of digital media brands, online marketplaces and subscription services, IAC delivers content and connections across a range of verticals, including lifestyle, finance, home services and personal care. The company's operations span North America and parts of Europe, where its brands reach millions of visitors each month.
In the digital publishing space, IAC's Dotdash Meredith division develops original content and data‐driven journalism across more than a dozen specialty sites.
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