MSN BETA TESTS NEW SEARCH-AD SYSTEM OVERSEAS
Includes Demographic Functions Google and Yahoo Lack
HOW-TO STORIES FROM THE SEARCH-ENGINE TRENCHES
Conference Attendees Show Keen Interest in Search Ad Agencies
WPP OPENS SEARCH ENGINE AD SPECIALTY UNIT
Latest Sign of Growing Impact and Importance of Search Marketing
ASK JEEVES FIGHTS FOR MORE SEARCH ENGINE MARKET SHARE
Launches Largest Ad Campaign in Recent Years
ROOMBA CLEANS UP WITH SEARCH ENGINE MARKETING
New Strategy Made It the 7th Most-Searched Brand on Google
INSIDE THIS HOLIDAY'S SEARCH ENGINE AD BUSINESS
Veteran Interactive Marketers Offer Insights From the Selling Trenches
SEARCH ENGINE AD TERM PRICES SKYROCKET
What Once Sold for Pennies Now Bumps $20 Per Click
RISE OF THE NEW SEARCH-BASED MEDIA-BUYING AGENCIES
$3.2 Billion in Placements Predicted Next Year
WHY HP HAS PURCHASED TENS OF THOUSANDS OF SEARCH TERMS
A Top Exec Explains New Marketing Visions at AdTech
ONLINE YELLOW PAGES BEAT SEARCH ENGINES LOCALLY
Exploit Ability to Connect Web-Browsing Shoppers to Hometown Retailers
MSN'S $100 MILLION SEARCH ENGINE REVAMP
Severs Ties With Yahoo!; Takes Page From Google
AOL ACQUIRES ADVERTISING.COM FOR $435 MILLION
Looks to Bolster Online Ad Growth With Pay-per-performance Model
Under the terms of the agreement, IAC will issue 1.2668 shares of common stock for each share of Ask Jeeves stock in a tax-free transaction valued at $1.85 billion. IAC intends to buy back through its previously authorized share repurchase programs at least 60% of the number of shares it will issue for this acquisition.
The acquisition puts IAC in the competitive area of search-engine marketing. Google and Yahoo now control about two-thirds of the overall search spending online, according to online marketing research company eMarketer. Paid search advertising is expected to generate 41% of the $11.5 billion budgeted for online advertising this year, eMarketer reports.
Last month Ask Jeeves announced it was launching one of its largest marketing pushes in years, TV marketing campaign consisting of six humorous commercials, plus a national print ad campaign.
"Ask Jeeves was founded almost 10 years ago based on the idea that simple text search results alone are not sufficient or satisfying -- but, rather, that consumers want answers to questions -- and questions posed in natural language and answered with spot-on accuracy were especially desired and appealing," Mr. Diller, IAC's chairman-CEO, said in a statement.
Filling a niche
Ask Jeeves fills a niche Mr. Diller is missing in his e-commerce conglomerate. Mr. Diller built up News Corp.'s Fox TV network, and InterActive Corp. split off from USA Networks in 2002, shortly after he resigned as resigned as co-CEO of Vivendi Universal's Vivendi Universal Entertainment. IAC operates travel, retailing, ticketing, personals, media, financial services, real estate and teleservices Web sites, reaching 44 million users monthly.
AskJeeves search services will be integrated throughout the IAC sites, according to the company. Other plans include improving Ask Jeeves' local search offerings and integrating IAC brands into the Ask Jeeves properties.
Ask Jeeves will remain independent, with offices in Oakland, Calif. Steve Berkowitz will stay on as CEO.