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IAC Rumors True: Buying Ask Jeeves

The rumors proved true: InterActiveCorp will buy Ask Jeeves for $1.85 billion in stock. The deal values Ask Jeeves shares at $28.24, only a 17 percent premium from their last trading price on Friday. IAC shares, for their part, slumped three percent on the news. Ask Jeeves shares quickly jumped up to just below the deal's price.

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