But those factors didn’t prevent Chelsea Clinton from landing a plum assignment: joining the board of Barry Diller’s Internet media holding company.

In her new role, the daughter of former President Bill Clinton and U.S. Secretary of State Hillary Clinton will be the youngest member of IAC’s board by seven years.

Fellow directors include Michael Eisner, former chief of Walt Disney Co., and Edgar Bronfman Jr., chairman of Warner Music Group.

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Diller made the remarks at the Goldman Sachs Technology and Internet Conference today in San Francisco.

Diller said IACI took a large cash position in the break up of the company into five public entities in anticipation of finding cheap companies to buy–but he says they didn’t find much to buy.

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The company reported revenue of $367.2 million, ahead of the Street at $339.6 million; adjusted EPS of 20 cents a share was two cents better than the consensus at 18 cents. Revenue in the search segment, which accounts for about half of revenue, was up three percent.

Since October 27, IACI has repurchased 15.8 million shares for $311.3 million, an average price of $19.75.

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The new Ask is faster than its predecessor. Its search results are more relevant and sharpened by structured data (TV listings, etc.) where available. And the little search engine that couldn’t is still using semantic technology to interpret and answer questions put to it by users. “To call it an all-new Ask is wrong; it’s an evolution of Ask,” said Barry Diller, CEO of Ask parent IAC/InterActiveCorp (IACI). “I think it’s going to help us primarily in [visitor] retention and frequency. That is really its goal.”

But while it might appeal to some, Ask’s latest iteration isn’t likely to make much of a difference in the brutish battle for search engine market share. But then Ask doesn’t need much, does it? The search business is enormously profitable. As Microsoft’s (MSFT) Don Dodge once noted, every market-share point in search is worth a billion dollars or more. So if Ask manages to boost its share of all searches even slightly, it’s a success. “Search revenue for us is very profitable and it’s certainly growing,” said Diller. “Does it matter whether or not we take big chunks of…market share? No. Would we like and hope to? Yes.”

The new Ask is faster than its predecessor. Its search results are more relevant and sharpened by structured data (TV listings, etc.) where available. And the little search engine that couldn’t is still using semantic technology to interpret and answer questions put to it by users. “To call it an all-new Ask is wrong; it’s an evolution of Ask,” said Barry Diller, CEO of Ask parent IAC/InterActiveCorp (IACI). “I think it’s going to help us primarily in [visitor] retention and frequency. That is really its goal.”

But while it might appeal to some, Ask’s latest iteration isn’t likely to make much of a difference in the brutish battle for search engine market share. But then Ask doesn’t need much, does it? The search business is enormously profitable. As Microsoft’s (MSFT) Don Dodge once noted, every market-share point in search is worth a billion dollars or more. So if Ask manages to boost its share of all searches even slightly, it’s a success. “Search revenue for us is very profitable and it’s certainly growing,” said Diller. “Does it matter whether or not we take big chunks of…market share? No. Would we like and hope to? Yes.”

Yesterday, a source told me that Flixster, the fast-growing social network for movie lovers, was back in talks to be bought by Barry Diller’s InterActiveCorp.

Those IAC-Flixster rumors flew about a month ago and were entirely true.

But no deal, it seems. IAC has apparently found the price too high, according to other sources. But, said these sources, others are still in the game.

So if an acquisition deal does happen, two intelligent guesses to the possible winner for the company with 39.5 million user home pages, more than 1 billion user-generated movie ratings and a sassy motto of “Stop Watching Bad Movies”?

Blockbuster or News Corp.

(Sources said Viacom’s MTV unit gave Flixster a look too, but also thought the price too high.)

The former because the video-rental chain has been mightily trying to break into all kinds of Web markets to give it a place to sell online. Blockbuster has been struggling of late, because of its costly battles with Web sites like Netflix and the growth of video-on-demand and movie downloads via the Internet and cable. Its online subscribership is only 3.1 million.

And the latter, because such a site tucks in nicely with some of the media giant’s properties like MySpace and Rotten Tomatoes, as well as its numerous movie and television arms. (FYI, News Corp. is in the process of acquiring Dow Jones, which is the owner of this site.)

The price? I will wager $150 million in cash that had been previously bandied about, although IAC’s offer was likely much lower than that.

Pricey, yes, since Flixster only has 17 employees and was created less than two years ago. It received $2 million in funding in February from Lightspeed Venture Partners.

But its vibrant Web site is booming and is now one of the largest movie sites on the Internet. Flixster is also one of the more popular widgets on Facebook, with more than 800,000 active daily users.

While Amazon-owned IMDb (Internet Movie Database) is larger in terms of traffic, Flixster is growing much faster.

On the site, users have profiles typical of most general social networks, with a laser-focus on movies, actors, directors and movie quizzes and news. Flixster also has video content, both professional and user-generated and relies heavily on user reviews.

OK, I am definitely not Princess Grace-worthy (well, who is? But here’s a picture of her, because it just makes life more pleasant).

But I am headed right now to her glam neck of the woods for the Monaco Media Forum, which is set to take place from tomorrow through Saturday in Monte-Carlo.

Hosted by HSH Prince Albert II, its subhead this year is “Leadership for the Digital Revolution,” and the group gathered is pretty heady and packed with American Webheads, as well as from around the globe. It has all been wrangled by Wired’s Spencer Reiss.

Speakers include Google’s ad guy Tim Armstrong, RealNetworks’ CEO Rob Glaser, CBS interactive guru Quincy Smith, pundit Esther Dyson, Babelgum Chairman Silvio Scaglia, MySpace CEO Chris DeWolfe, NetVibes CEO Tariq Krim and News Corp.’s British Sky Broadcasting CEO James Murdoch (whose father is BoomTown’s new bossman).

I will be doing a one-on-one interview Friday morning with InterActiveCorp CEO Barry Diller with the title “Reality Check.”

Videos to come, of course, as BoomTown gets some European class.

Much, much, much.

Yesterday, the battle between InterActiveCorp’s Barry Diller and John Malone of Liberty Media (pictured here in cartoon form) got much more interesting.

As luck would have it, I will be interviewing Diller onstage at the Monaco Media Forum in Monte-Carlo this week–yes, it’s as glamorous as it sounds–so now there will be lots more to talk to him about at the digital gathering.

Diller is an excellent interview–he’s appeared at two D conferences–as he likes to parry more than the average CEO and he is good at it.

Very good, as it turns out, when dealing with Malone.

By way of background, Liberty has indicated it wants to rid itself of the 24% of IAC it owns. That stake has 58% super-voting rights, but it’s controlled by Diller via a past agreement.

So, Malone has been applying public pressure, leveling some choice barbs at Diller.

In a previous piece in The Wall Street Journal, Malone came out with this gem: “There was a time when there was, I think, a 20% Barry premium. Today you could argue there is a Barry discount.”

To deal with the pressure, Diller made the move to carve up the $9 billion holding company, made up of a variety of Internet properties, chopping and dicing more than a Ginsu knive demonstrator selling his heart out on his HSN cable-shopping network (see IAC revenue chart below).

It’s a major reversal for Diller, who has spent many years assembling IAC and who even talked about the importance of its synergies. Now, under his proposal, it will be split into five parts, all separately traded, essentially separating the wheat from the chaff.

Faster-growing and more prominent Web outfits Ask.com, Citysearch and Match.com will remain in IAC. HSN, Ticketmaster, Interval International and LendingTree would become separate, much as Diller’s travel sites became in a previous deal in 2005.

And under terms of Liberty’s proxy agreement with Diller, Liberty could get its stock power back in the spun companies–the ones Diller does not care about as much.

Even Malone was warily pleased. “It unsticks some things,” he said in another article yesterday in The Wall Street Journal.

Well, at least it’s a both tastily complex horse-trading scheme, typical of Diller, but also has a simplicity to it.

Still, Diller faces some basic Internet issues as he seeks a slimmer future.

For example, Ask, which just re-signed its guaranteed ad deal with Google, is innovative in its search results approach in a way Yahoo should be (we’ll forgive the company its misguided Kato Kaelin ad campaign).

But it is still a small player, with 5% of the U.S. market (although a network of sites it has gives it a bit more clout), which limits its scope and power.

In other words, small may be beautiful, but it’s still small.