IAC/InterActiveCorp, the Internet company headed by Barry Diller, is close to an agreement to acquire Ask Jeeves Inc., the nation's fourth-largest search engine company, for about $1.9 billion, according to an executive involved in the negotiations.
An announcement could be made as early as today.
IAC/InterActive owns a variety of Internet businesses. Its principle holdings are Expedia, Ticketmaster, Home Shopping Network, Match.com and CitySearch. Advertising spending on search sites is rapidly growing and Mr. Diller's company appears to be trying to tap into a market dominated by Google and Yahoo.
Most of Ask Jeeves's revenue comes from advertising that appears on its sites through a contract with Google. That contract runs through 2007.
Fourth-quarter profits and revenue at Ask Jeeves, whose brands include ask.com, Excite.com, iWon.com, more than doubled. Net income rose to $17.5 million and revenue rose to $86.1 million from $31.8 million a year earlier.
Barry Diller's InterActiveCorp (IAC) is near a US$2 billion deal to buy search engine ''Ask Jeeves'', according to a report in Monday's ''Wall Street Journal''. 

The corporate boards from  both companies were in talks all weekend negotiating what appears to be an all-stock deal. If approved, the price tag would be a substantial premium over ''Ask Jeeves'' valuation of $1.4 billion as of Friday's stock market close.

The acquisition of Oakland, California-based ''Ask Jeeves'' by IAC would mean they own a known brand name and get a foothold in revenues from search engine advertising. The company also would become a direct competitor with companies such as Google, Yahoo!, Amazon.com and Microsoft who also have launched their own high-profile internet search engines. ''Ask Jeeves'' also owns other brands, including Excite.com and iWon.com.

Diller has built InterActiveCorp on the backbone of the cash generated by Home Shopping Network, a company he used to bankroll the purchases of a large portfolio of internet and electronic commerce companies. These include Expedia, Ticketmaster, Match.com, CitySearch and the LendingTree. 

He also bought and grew cable networks USA Network and Sci Fi Channel before selling them off to NBC Universal, of which he is the largest individual shareholder.