IAC Extends and Revises its Agreement with Google

IAC, the parent of Ask.com, the Daily Beast and Citysearch, today announced that it has amended its agreement with Google and extended it through March 31, 2016.The agreement, through which Google provides IAC's search products and network partners with sponsored listings and other search-related services, had previously been scheduled to expire at the end of […]

IAC, the parent of Ask.com, the Daily Beast and Citysearch, today announced that it has amended its agreement with Google and extended it through March 31, 2016.

The agreement, through which Google provides IAC's search products and network partners with sponsored listings and other search-related services, had previously been scheduled to expire at the end of 2012. The amended agreement, taken as a whole, is comparable to the previous agreement.

Though IAC didn't get into specific details about what terms changed, the company says the new agreement is "comparable" to the previous agreement, when taken as a whole. Back in November, Ask.com gave up web search to concentrate on Q&A search, and was said to be working with a partner to provide search results. The renewal of the Google agreement seems to hint at Google being the one to provide that service, but no one is specifically saying that. It's unclear whether Bing was actively working to win IAC as a partner.

"Our Search business has grown meaningfully over the past five years, from $58 million in Operating Income Before Amortization in 2006 to $125 million last year, and generated pre-tax free cash flow(i) in excess of $500 million over that period," said Greg Blatt, CEO of IAC.

"The industry continues to grow at attractive rates and we have every opportunity for continued growth and success."

[Soaurce: IAC Press]