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« On CNET, Plaxo and M&A in this Environment | Main | I Love Great Marketing Events »

May 15, 2008

If You Don't Like the Answers, Just Ask.com Again

After Answers.com could not complete the financing to acquire them, Lexico, parent of Dictionary.com, has agreed to be acquired by Ask.com.

Ask, owned by IAC InterActiveCorp (NASD:IACI) agreed to be acquired by Answers.com (NASD:ANSW) for $100 million last fall, but Answers was unable to complete the financing round that would have been required for the deal.

Dictionary.com and it's siblings thesaurus.com and reference.com generate strong traffic today, but, assuming the deal is in the range of the original answers.com deal, it seems like a lot to pay for what is, in essence, a set of vanity URLs. Ask states that the acquisition will grow their user base to 145 million unique visitors monthly, which would make them the 9th most visited site.

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