Like the 1980 Queen hit, "Another One Bites The Dust," so goes IAC/Interactive Corp's
IAC faces reality, allowing it to focus on other businesses such as Match.com and areas of search where it has the potential to be a winner such as distributing toolbars and Q&A. The move will likely improve the company's profitability, too, as competing with Google in search isn't cheap, just look at the expanding losses in Microsoft's Online unit, which reached well over $2 billion in its 2010 fiscal year.
In the future, Microsoft's Bing could strike a deal to provide Ask.com's search results, giving it a small but meaningful market share boost that is critical for it to become a more credible threat to Google's dominance.
An unlikely loser?
Despite the potential revenue and share gains, Ask.com's exit could generate for Google, I doubt there's too much celebration. The company loses a nominal competitor that it could point to when antitrust regulators come calling, an event that occurs with increasing frequency for the search giant.
Let us know in the comments what you think about IAC's decision to end its search engine ambitions and whether or not Microsoft will be making a similar announcement in five years. And for more on technology stocks, click here to get The Motley Fool's free report, The Only Stock You Need To Profit From the NEW Technology Revolution.
Fool contributor April Taylor owns shares of Google. Google and Microsoft are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers pick. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.