Nov 3 (Reuters) - IAC missed Wall Street

expectations for quarterly revenue on Monday, as fewer visitors

reached its ad-supported search and content websites amid the

rise of AI-generated summaries.

The media and internet firm's search unit reported a 41%

decline in third-quarter revenue, hurt by reduced traffic to

traditional organic search listings as users got answers

directly from Google AI Overviews without clicking through to

the websites.

Overall revenue declined 8% to $589.8 million, below

estimates of $601.6 million, according to data compiled by LSEG.

Revenue from its Care.com segment fell 5% due to lower

subscriptions on its platform.

However, IAC's largest unit People reported a 9% increase in

digital revenue, driven by strong growth in performance

marketing and licensing.

The segment, which is the largest digital and print

publisher in the U.S., signed a new AI licensing deal with

Microsoft ( MSFT ) to allow its Copilot assistant to use its

content.

"We believe publishers deserve fair compensation for

their quality IP," said Jonathan Roberts, chief innovation

officer, People, regarding the deal with Microsoft ( MSFT ).

IAC's adjusted core profit in Q3 fell 59% to $29.1 million,

primarily due to several one-time expenses including about $15

million in severance-related costs at the People unit.

The company now expects its adjusted earnings before

interest, taxes, depreciation and amortization to be between

$234 million and $258 million for 2025, compared with its prior

forecast of between $247 million and $285 million.