Procrastination and a fear of commitment apparently didn't enter the equation when it came to renewing a longstanding search and advertising agreement between Google and IAC. This morning, IAC announced that the two companies have extended their deal through March of 2016.
The original deal wasn't set to expire until the end of 2012, so the timing of this development comes as a bit of a surprise. Most people and organizations cut things a little closer, and a lot could change between now and then in terms of search technology or even the value of a dollar (economists seem to mention the word "inflation" a lot these days).
Today's announcement signals that Google's been an excellent partner for IAC, anyway, which is good news for both sides.
The announcement could even push other companies to give the idea of a search and advertising deal with Google a second look.
Greg Blatt, the CEO of IAC, stated, "Our Search business has grown meaningfully over the past five years, from $58 million in Operating Income Before Amortization in 2006 to $125 million last year, and generated pre-tax free cash flow in excess of $500 million over that period. The industry continues to grow at attractive rates and we have every opportunity for continued growth and success."
Unfortunately for investors, not all the news is so cheery, as both companies' stocks are sinking today. Google's stock is down 0.35 percent and IAC's stock is down 1.29 percent at the moment, although there are sure to be many other factors at work.