The Associated Press

Tue, May 13, 2008 (2:32 p.m.)

IAC/InterActiveCorp and Liberty Media Corp. say they resolved a legal skirmish regarding IAC's plans to break into several parts.

Liberty is dropping an appeal it filed disputing a March ruling by a Delaware judge who sided with IAC head Barry Diller on the breakup plans.

Liberty owns about 30 percent of IAC's equity and was fighting with IAC for months over the breakups.

The companies agreed on various arrangements regarding operations of the spun-off companies. These include Liberty's right to board representation at each company and a limitation on Liberty's ability to raise its ownership stakes.

IAC moved ahead with the breakups through initial filings with the Securities and Exchange Commission on Tuesday.