Ask.com Staying the Course

"While we do not expect the management change to immediately impact the business, we think the loss of a leader in a business segment so core to the company's strategic vision justifies a ratings change," Devitt writes. "Ask has been a bright spot for Interactive and will now most likely present a drag."

Indeed, Chief Financial Officer Thomas McInerney told investors earlier this year that sales at the company's HSN division would decline in the first quarter. Results will be further crimped by Diller's plans to "invest significantly and aggressively in our business" for long-term growth.

Lanzone, formerly Ask's senior vice president and general manager for North America, is the second major appointment IAC has made in less than a month. Mindy Grossman was named to head IAC's retailing group on April 17, overseeing one of the company's most important units, which included HSN and Cornerstone Brands.

IAC reports first-quarter results on May 2. Analysts are expecting earnings of 27 cents on sales of $1.55 billion, according to Thomson Financial.

On Monday, IAC slipped 81 cents to $29.26.