Rapp, described as "very sweet" by some who know him, had sticky fingers when it came to deals at the company — but he was so busy evaluating other people's acquisitions, he didn't seem to have time to land any plum deals. In particular, he kept bringing up Digg, despite a sky-high price that didn't fit Diller's bargain-bin predilections. Rapp now has to invent a new job for himself — more than a challenge, considering Liberty Media's attempt to take control of IAC. Not so sweet.

His M&A duties now go to Shana Fisher, also a senior vice president charged with M&A. But Fisher's been spending more time on IAC's online videogames venture, InstantAction.com. Perhaps Fisher and Rapp's moves reflect a reality: With the threat of Liberty hanging over IAC, it's next to impossible to get any deals done.