<HTML>


<HEAD>








<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>


<META NAME="IDLocation" CONTENT="FirstPageFooter">


<META NAME="IDAlignment" CONTENT="Left">


<META NAME="IDContent" CONTENT="DateTime">


<META NAME="LibraryName" CONTENT="01">


<META NAME="DocNumber" CONTENT="842271">


<META NAME="Version" CONTENT="1">


</HEAD>


<BODY VLINK="#800080">





<B><FONT SIZE=3><P ALIGN="RIGHT"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>


<P ALIGN="CENTER">Washington, DC 20549</P>


<U><P ALIGN="CENTER">&#9;</P>


</U><P ALIGN="CENTER">FORM 8-K</P>


<P ALIGN="CENTER">current report<BR>


<BR>


Pursuant to Section 13 or 15(d) of the <BR>


<BR>


Securities Exchange Act of 1934</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Date of earliest event reported:  October 13, 2006</P>


<U><P ALIGN="CENTER">&#9;</P>


</U><P ALIGN="CENTER">Internet Capital Group, Inc.</P>


<U><P ALIGN="CENTER">&#9;</P>


</B></U><P ALIGN="CENTER">(Exact name of registrant as specified in charter)</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=684>


<TR><TD WIDTH="37%" VALIGN="TOP">


<B><FONT SIZE=3><P ALIGN="CENTER">Delaware</B></FONT></TD>


<TD WIDTH="25%" VALIGN="TOP">


<B><FONT SIZE=3><P ALIGN="CENTER">000-26929</B></FONT></TD>


<TD WIDTH="39%" VALIGN="TOP">


<B><FONT SIZE=3><P ALIGN="CENTER">23-2996071</B></FONT></TD>


</TR>


<TR><TD WIDTH="37%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(State of Incorporation)</FONT></TD>


<TD WIDTH="25%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Commission File Number)</FONT></TD>


<TD WIDTH="39%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(I.R.S. Employer</P>


<P ALIGN="CENTER">Identification No.)</FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<B><U><FONT SIZE=3><P ALIGN="CENTER">&#9;</P>


</B><P ALIGN="CENTER">690 Lee Road, Suite 310, Wayne, PA  19087</P>


</U><P ALIGN="CENTER">(Address of Principal Executive Offices) &#9;(Zip Code)</P>


<U><P ALIGN="CENTER">(610) 727-6900</P>


</U><P ALIGN="CENTER">(Registrant's telephone number, including area code)</P>


<B><U><P ALIGN="CENTER"></P>


</U><P ALIGN="CENTER">&nbsp;</P>


</B><P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>





<P>/  / Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>





<P>/  / Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>





<P>/  / Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>





<P>/  / Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>


<B><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P></B></FONT>


<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=416>


<TR><TD WIDTH="23%" VALIGN="TOP">


<B><FONT SIZE=3><P>Item 1.01. </B></FONT></TD>


<TD WIDTH="77%" VALIGN="TOP">


<B><FONT SIZE=3><P>Entry into a Material Definitive Agreement</B></FONT></TD>


</TR>


</TABLE>





<FONT SIZE=3>


</FONT><U><P>Payment of Bonus</P>





</U><P>On October 13, 2006, the Compensation Committee of the Board of Directors (the &quot;Committee&quot;) of Internet Capital Group (the &quot;Company&quot;) approved a $350,000 special cash bonus to Douglas Alexander in respect of his exceptional performance in connection with the sale of LinkShare Corporation.  The Committee approved the bonus after the Company's receipt in early October 2006 of approximately $14.7 million of escrowed proceeds from the sale of LinkShare Corporation<A NAME="node2"><A NAME="node3"></A></A>.</P>





<B><P>SIGNATURE<BR>


</P>


</B><FONT SIZE=3><P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=616>


<TR><TD WIDTH="29%" VALIGN="TOP" HEIGHT=40><P></P></TD>


<TD WIDTH="5%" VALIGN="TOP" HEIGHT=40><P></P></TD>


<TD WIDTH="67%" VALIGN="TOP" COLSPAN=2 HEIGHT=40>


<FONT SIZE=3><P>INTERNET CAPITAL GROUP, INC.</FONT></TD>


</TR>


<TR><TD WIDTH="29%" VALIGN="TOP">


<FONT SIZE=3><P>Date:  October 16, 2006&#9;</FONT></TD>


<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="14%" VALIGN="TOP">


<FONT SIZE=3><P>By:</FONT></TD>


<TD WIDTH="53%" VALIGN="TOP">


<U><FONT SIZE=3><P>/s/ Suzanne L. Niemeyer </U></FONT></TD>


</TR>


<TR><TD WIDTH="29%" VALIGN="TOP">


<FONT SIZE=3><P>&#9;</FONT></TD>


<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="14%" VALIGN="TOP">


<FONT SIZE=3><P>Name:</FONT></TD>


<TD WIDTH="53%" VALIGN="TOP">


<FONT SIZE=3><P>Suzanne L. Niemeyer</FONT></TD>


</TR>


<TR><TD WIDTH="29%" VALIGN="TOP">


<FONT SIZE=3><P>&#9;</FONT></TD>


<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="14%" VALIGN="TOP">


<FONT SIZE=3><P>Title:</FONT></TD>


<TD WIDTH="53%" VALIGN="TOP">


<FONT SIZE=3><P>Managing Director, General Counsel and Secretary</FONT></TD>


</TR>


</TABLE>


</CENTER></P>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>


<DIR>





<P> </P></DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</DIR>


</BODY>


</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rrd133307.htm", "secsgml_size_bytes": 5490}]
{"company-data": {"conformed-name": "INTERNET CAPITAL GROUP INC", "cik": "0001085621", "assigned-sic": "7389", "irs-number": "232996071", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16249", "film-number": "061145734"}, "business-address": {"street1": "690 LEE ROAD", "street2": "SUITE 310", "city": "WAYNE", "state": "PA", "zip": "19087", "phone": "610-727-6900"}, "mail-address": {"street1": "690 LEE ROAD", "street2": "SUITE 310", "city": "WAYNE", "state": "PA", "zip": "19087"}}
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
current report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event reported:  October 13, 2006
Internet Capital Group, Inc.
(Exact name of registrant as specified in charter)
Delaware
000-26929
23-2996071
(State of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)
690 Lee Road, Suite 310, Wayne, PA  19087
(Address of Principal Executive Offices) 	(Zip Code)
(610) 727-6900
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
/  / Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
/  / Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
/  / Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
/  / Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material Definitive Agreement
Payment of Bonus
On October 13, 2006, the Compensation Committee of the Board of Directors (the "Committee") of Internet Capital Group (the "Company") approved a $350,000 special cash bonus to Douglas Alexander in respect of his exceptional performance in connection with the sale of LinkShare Corporation.  The Committee approved the bonus after the Company's receipt in early October 2006 of approximately $14.7 million of escrowed proceeds from the sale of LinkShare Corporation
.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
INTERNET CAPITAL GROUP, INC.
Date:  October 16, 2006
By:
/s/ Suzanne L. Niemeyer
Name:
Suzanne L. Niemeyer
Title:
Managing Director, General Counsel and Secretary