IAC/Interactive's Ask.com in 5 Year, $3.5B Ad Deal with Google

Includes: GOOG, IAC
by: Eric Savitz

IAC/Interactive (IACI), which Monday announced plans to break into five publicly traded companies, said on a conference call that it has reached an agreement with Google (NASDAQ:GOOG) to provide sponsored-listings on Ask.com in a five-year deal the company said would be worth at least $3.5 billion. The deal with Google replaces a previous agreement between the two companies that was about to expire; as recently as last week there had been speculation on the Street that a new deal for Ask with Google, Microsoft (NASDAQ:MSFT) or Yahoo (NASDAQ:YHOO) for search-related ads would provide a catalyst for the stock.

IACI closed Monday at $31.84 up $2.22, or 7.49%.