Ask Jeeves closes Interactive buy

SAN FRANCISCO:Ask Jeeves Incorporation ,said it closed its $501 million purchase of Interactive Search Holdings, a move expected to double Ask Jeeves' share of the competitive Web search market.

The acquisition, first announced in March, included privately held Interactive Search Holdings' Web properties and businesses such as My Way, iWon, Excite, My Search, My Web Search and the MaxOnline advertising network.

Under terms of the agreement, Ask Jeeves issued 9.3 million shares of common stock and options and paid approximately $144 million in cash.

"This acquisition doubles our market share and enhances our ability to compete in the fast-growing search market," Ask Jeeves Chief Executive, Steve Berkowitz said in a statement.

Google Incorporation, the current Web search leader, recently announced plans for an initial public offering. Its key rival, Yahoo Inc. last year spent $1 billion to boost its position.

© Reuters