On the Call: IAC CEO Barry Diller

Besides being hampered by weakness in the online advertising market, IAC/InterActiveCorp's Web-based city guide, Citysearch, is facing increasing competition from a rising tide of social review and recommendation sites. These include review site Yelp, which is seen as its biggest rival in the business-review space.

During a conference call with analysts Tuesday to discuss IAC's third-quarter results, media mogul and IAC CEO Barry Diller discussed the possibility that IAC might grow Citysearch by buying other local Web properties.

QUESTION: Given the increasing popularity of social networking and recommendation Web sites, what opportunities do you see for Citysearch to buy other local Web sites?

ANSWER: "As for Citysearch, I don't think we're going to be in an acquiring mode. We acquired (dining review site) Urbanspoon, which was a great little acquisition, and then we acquired another little thing recently. But ... I don't think it's going to grow by acquisition."