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IAC Losses May Bode Ill for Travel Sites

E-commerce giant IAC blamed its $49 million quarterly loss on performance of its travel sites, which include Hotels.com and Expedia. Dismissing the results as temporary setbacks, IAC intends to go ahead with plans to split up its diverse e-commerce holdings into two different companies, one focusing on travel. But analysts note that the poor performance among those sites may portend a longer-term problem where internet travel shoppers have been increasingly attracted directly to hotel and airline sites to do their booking.

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