Report: Ask Jeeves to be sold for $1.9B

PHILADELPHIA, March 21 (UPI) -- Philadelphia-based IAC/InterActiveCorp may acquire Ask Jeeves, the fifth-largest search engine firm, for $1.9 billion, the New York Times reported Monday.

Other reports said Monday the Internet company, headed by Barry Diller, confirmed its interest in Ask Jeeves.

The acquisition is expected to be a stock transaction, the Times said.

IAC/InterActive owns a variety of Internet businesses. Its principle holdings are Expedia, Ticketmaster, Home Shopping Network, Match.com and CitySearch.

The interest stems from the fact that advertising on search sites is rapidly growing and Diller's firm wants to tap into a market dominated by Google and Yahoo.

Ask Jeeves's revenue mostly derive from advertising on its sites through a contract with Google, which expires in 2007. Ask Jeeves' fourth quarter earnings rose to $17.5 million on revenues of $86.1 million,

IAC/InterActive is expected to acquire Ask Jeeves in a stock transaction, the Times said.