Well, I don't know.
The rationale probably went something like this :
i) 2MM unique visitors
ii) Decent product that focussed more readily on areas outside entertainment
iii) An asset that could be monetized by Citysearch's sales force
Historically, I've been a huge fan of IAC. I saw them as the untold juggernaut of local -- they bought service magic, trip advisor, expedia and sidewalk (microsoft's asset that merged with citysearch). If you properly integrate these services you've got the best property for local search on the web. But, as awesome as they've been at acquiring companies, they've (from my outside perspective) been crappy at integrating and executing these assets.
So while the price may have been only 10 or 13MM dollars, I don't see what they're going to do with the asset(s).
If you saw my post the other day, I thought it made sense for one of the directory or yellow pages companies to buy the company. Oh well...shows what I know.