IAC has had an agreement with Google for some time now to hand over all search advertising on Ask.com and other IAC sites to the search giant. In 2007, IAC extended the deal, which was worth $3.5 billion at the time, to end in 2012. According to a release issued this morning, IAC and Google has renewed and extended the agreement through March 31, 2016.
According to the release, the agreement, through which Google provides IAC’s search products and network partners with sponsored listings and other search-related services, is comparable to the previous agreement.
CEO of IAC, Greg Blatt, said in a statement that its search business has grown from $58 million in Operating Income Before Amortization in 2006 to $125 million in 2010, and generated pre-tax free cash flow(i in excess of $500 million over that period.
Handing over search advertising and technology to Google has been a good bet for the company. Google has actually been contributing to a portion of IAC’s Ask.com’s search results and last Fall, IAC announced that it would be completely outsourcing Ask’s search (although it’s unclear to which company, it could be Google).