Reference service Answers.com (Nasdaq: ANSW) has seen its traffic drop about 28 percent in the last week, after Google changed its search algorithm...the site is heavily dependent on Google for search-related traffic, and this would also mean serious impacts on its revenues and stock price. In turn, this may mean some complications in its proposed $100 million buyout of Dictionary.com, which is based on its ability to raise that amount of money on the open market ($140 million raise, to be exact). However the company CEO Bob Rosenschein assures the investors in an issued release: “This change only demonstrates the sound business rationale behind our agreement to purchase Dictionary.com, because it underscores a primary motivation for the deal: to secure a steady source of direct traffic and mitigate our current dependence on search engine algorithms. On a pro forma basis, we expect at least 70% of our total traffic to come from people navigating directly to our Web properties or typing the term ‘dictionary’ in a search engine. We remain optimistic and look forward to completing this transformative acquisition.”

• Answers.com To Acquire Lexico, Parent Of Dictionary.com, For $100 Million
• Answers.com Files For $140 Million Raise