Diller Asks Jeeves to Grow

The rising tide of Internet advertising is lifting all boats, but catching a wave could still be tough for IAC/InterActiveCorp (IACI Quote).

Barry Diller's Internet empire expects to increase the staff at its Ask Jeeves search engine by about 20%, Ask Jeeves head Steve Berkowitz says. The expansion comes as Jeeves, which employs 650 workers now, posts solid gains in traffic but remains overshadowed by its more famous and deeper-pocketed rivals. IAC shares are down 10% for the year.

The search company has a storied history, of sorts. Ask Jeeves shares quadrupled on their first day of trading in 1999, only to crash when the Internet bubble burst. Now the company, which became part of New York-based IAC in a $1.9 billion deal completed in July, is expanding both its operations center and its corporate headquarters staff. ...