IAC CEO Barry Diller discusses whether Citysearch may acquire other local Web sites

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On the Call: IAC CEO Barry Diller

SAN FRANCISCO — Internet company IAC/InterActiveCorp’s Ask.com search engine is the fourth-largest in the U.S., trailing offerings from Google Inc., Yahoo Inc. and Microsoft Corp.

In October, IAC CEO Barry Diller told analysts during an earnings conference call that IAC was open to “consolidating transactions in the area of search,” and that it was not likely to be the consolidator. Many analysts thought this meant IAC was interested in selling Ask.

During a quarterly conference call with analysts, Diller cleared up his earlier statements.

QUESTION: Can you clarify comments you’ve made in the past about consolidating Ask.com?

ANSWER: “I have said, as you all know, that I’ve thought this area of search would be consolidated over time or be consolidated. I still feel that way. That led immediately to, ‘We’re selling Ask.’ I don’t know what form that consolidation will take. It’s certainly possible that Ask will be part of another organization, larger or smaller over time; it’s not predictable. But right now Ask’s not for sale, we’re not selling it, we’re not out there in any process, and I expect that will probably continue.”