InterActiveCorp near deal to buy AskJeeves
marketwatch.com: "IAC/InterActiveCorp is near a deal to buy Web-search service Ask Jeeves Inc."Although Expedia is expected to be split off from IAC forming two public companies could this move into search mean Expedia and IAC dominate AskJeeves search results?
Net Sense Bambi Francisco also has doubts about the integration of Ask Jeeves into IAC: "I wonder whether Diller can masterfully orchestrate the empire he's built. Even though Ask Jeeves has a larger purpose in life now that it will be the default search engine on all of IAC's properties which reaches 44 million unique visitors, I doubt Ask Jeeves' rankings in the search wars will improve...
The idea of a combination with lots of synergies more often than not falls prey to the reality of integrating human egos, operations, and technology. AOL and Time Warner's combination back in 2000 is probably the best example of ambition exceeding realistic goals.
In addition, too many goals and too many differing approaches on how to reach them will lead to competing priorities. That typically results in relatively lagging performances across all business units."
Francisco cites a few examples of too many synergies spoiling profits and concludes that Ask Jeeves would be better exploited as "part of Google, then Google would be able to keep all of the revenue it shares with Ask Jeeves."
Over at WebProWorld CRich theorises that " the idea is to integrate Ask’s search capabilities into IAC’s inventory of local content. This content stems from IAC’s number of consumer-oriented, location-sensitive web properties like Citysearch, Ticketmaster, Evite, Match.com, and Expedia.com.
Diller feels the amount of location-oriented traffic and resulting queries are ideal for Ask’s search technology. This should be a boost to local search and it’s ability to generate search advertising revenue, an attribute some believe the industry is lacking."
posted by Jen @ 7:11 AM
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