IAC’s Cutting Emerging Businesses is Rushmore Drive at Risk?

December 5, 2008

IAC, parent company of the “black search engine” RushmoreDrive, may be looking to shed some of its emerging business. According to this year’s 3 quarter earnings call, CEO Barry Diller reported that, “No businesses in the emerging sectors are carrying any big investments. It is an area we not going to emphasize in the future: we think that is a bit defocusing.”We don’t think emerging businesses are the tomorrow of our business. Some of the things within our emerging businesses: we will sell off and shut down.”

RushmoreDrive’s traffic has declined since the hype of their launch in April, but being IAC’s newest and only multicultural emerging business may save them from the chopping block this time around. However, Diller’s patience must be wearing thin, funding a business whose business model hasn’t exactly been the clearest since its inception. One thing’s for sure, the clock is ticking, and we will be watching.

Category: web 2.0 | Tags: barry diller, IAC, rushmore drive

Fredric Mitchell

A list of all of IAC's emerging market websites, fyi.

Pronto.com
Gifts.com
CollegeHumor
Busted Tees
Very Short List
Vimeo
ConnectedVentures.com (CV)
23/6
Primal Ventures
GarageGames
FiLife.com
Life123.com
Instantaction.com
RushmoreDrive.com
TheDailyBeast.com
ReserveAmerica
Bagsbuy.com
Shoebuy.com
Green.com

gem2001

Am I reading that right? They have 4.5 Million dollars and they are getting 152,000 unique visits a month? Mr. Diller, please call me immediately for 1/10000 of the cost I can generate 150,000 unique visits.

I get that SEARCH is the big dog online. If you can get a corner on SEARCH, then you are doign well, but I actually think that SEARCh is going to become more "intelligent" in the future. There is only so far, even the most powerful of algorythms can go. The best sites are the ones with live human beings who use the search engines to cull through information that is interesting or noteworthy to their audiences.

If YAHOO can't beat out google, what makes you think RUshmore Drive was going to be able to. I think Twitter, Facebook, Myspace etc indicate that Black web browsers are extrememly comfortable occupying a general "space" and then carving out their communities and networks within.

AroundHarlem.com

LOL at Gina.

Mr. Diller can give me a call too.

I've got a couple of ideas.

hudsonliberty

It sounds like the problem was that they had a great idea but lacked the internet marketing experience to pull the project off. It is a clear cut example that money alone isn't enough to make it on the internet. There is more to it than that.

Clarence Coggins
Crown Prince of Web 2.0
http://hudsonliberty.com/magic.html