Ask Jeeves for a $343m acquisition

Search engine Ask Jeeves announced today that it is acquiring Interactive Search Holdings - which counts bankrupt site excite.com and web-sweepstakes company iWon.com among its stable of websites - for the princely sum of $343m.

The deal will be made up of about $150m in cash and 9.3 million shares of common stock and options. As well as bringing in extra cash, Ask Jeeves is hoping that the site will bolster its presence in the search market.

Steve Berkowitz, CEO of Ask Jeeves, said he believes the financial gains of the acquisition should prove attractive for stockholders. "This acquisition will double our market share, enhance our ability to compete in the fast-growing search market and is expected to increase the financial returns to our shareholders... By leveraging these two complementary approaches to search, we expect to accelerate Ask Jeeves' market share gains," he said in a statement.

There's no doubt that the acquisition will bump up Ask Jeeves' visitor ratings. According to comScore Media Metrix, the Interactive Search family of websites was the ninth most visited property on the web in December 2003. Ask Jeeves made it to 26th place.