Diller’s Firm Completes Ask Jeeves Purchase

Billionaire Barry Diller’s IAC/InterActiveCorp completed its purchase of Web search service Ask Jeeves Inc. in exchange for shares worth as much as $2.32 billion and won shareholder approval to spin off its Expedia travel unit.

Diller paid stock for Oakland-based Ask Jeeves after the search company’s shareholders approved the takeover, New York-based IAC said. IAC shareholders also voted to separate Expedia, which gives them stock in the No. 1 U.S. travel company. That transaction is expected to close during the week of Aug. 8.

Diller will remain chairman and chief executive of IAC and also will be chairman of Bellevue, Wash.-based Expedia. Dara Khosrowshahi will be Expedia’s CEO.

Shares of IAC rose 61 cents to $26.41. Ask Jeeves shares rose 76 cents to $33.39.