Barry Diller’s IAC/InterActiveCorp and its controlling shareholder, John Malone’s Liberty Media, have reached an agreement on spinning off four of IAC’s largest businesses, putting to rest a dispute that took the two top executives to court.

Liberty said it now backs a proposal by Diller that the spun-off IAC units operate under a single-tier share structure, a move that would dilute Liberty’s control but, Diller argued, would make them more attractive to outside investors.