Infospace stock price, which reached $1,305 in March 2000, crashed down to just $2.67 by June 2002.. Microsoft co-founder Paul Allen lost an estimated $400 million during the bursting of the dot-com bubble.
Also in 2000, Infospace used a controversial accounting method to report $46 million in profits when in fact it had lost $282 million according to the U.S. Securities and Exchange Commission.
In 2003, InfoSpace acquired Moviso from Vivendi Universal Net USA. Moviso provides ringtones, wallpapers, and video games, usually accessed through a mobile handset enabling wireless carriers to charge a fee for these downloads.
September 2006 InfoSpace released news that a carrier partner would be working directly with major recording labels thus negatively impacting their core business. Following this carrier/label arrangement, InfoSpace sold the Moviso mobile content business to FunMobility, Atlas Mobile studio to Twistbox and IOMO re-emerged as FinBlade The remaining portions of InfoSpace Mobile were acquired by Motricity in December 2007.
Between May 2007 and January 2008, the company paid shareholders $500 million in special dividends, or $15.30/share.