Media mogul Barry Diller's IAC, InterActiveCorp, will invest $100 million in China. IAC is the parent company of and Citysearch. How will IAC fare in Round 2 of U.S. internet investment in China? Round 1 already saw Silicon Valley biggest stars fail to compete with strong Chinese competitors, including Google's second place to Baidu in search, eBay's trailing Taobao in auctions, and MSN's poor performance compared to QQ in instant messaging and online community.