Ask Jeeves Plans Spanish Service

Ask Jeeves Inc., the Internet search company being bought by Barry Diller’s IAC/InterActiveCorp, said Tuesday that it would begin a Spanish-language service as it expands outside the U.S.

Ask Jeeves Espana, expected to debut this year, is aimed at users in Spain and marks the first of several projects in Europe, said Jim Lanzone, Ask Jeeves’ senior vice president of search properties. It follows the Oakland-based company’s expansions into Japan and Britain.

Ask Jeeves is striving to compete with Google Inc. and Yahoo Inc. for advertising funds as the business of searching the Internet grows faster abroad than in the U.S. The non-U.S. market surged to $1.6 billion in 2004 from about $500 million in 2003, according to Susquehanna Financial Group analyst Marianne Wolk in New York.

“Ask Jeeves wants to participate in that growth,� said Wolk, who rates Ask Jeeves shares “neutral� and doesn’t own them.

IAC agreed to pay $1.96 billion in stock for Ask Jeeves last month as Diller, 63, seeks to enter the market for advertisements linked to Internet searches. Diller spent eight years acquiring electronic commerce companies and IAC currently sells travel, lodging, shopping, entertainment and mortgage services.

Shares of Ask Jeeves rose 52 cents to $28.68, while IAC rose 49 cents to $22.82, both on Nasdaq.