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IAC reported first quarter earnings this morning, and broke out the financials of what the new IAC would like after the pending five-way breakup of the company is completed. (A March court victory against dissenting shareholder Liberty Media clears the way for the spin offs). What’s clear from the financial statements is that the new IAC very much owes its 22 percent jump in revenues and 15 percent jump in operating income to the $3.5 billion, five-year deal it struck with Google last fall to hand over all search advertising on Ask.com and other sites to the search overlord.

In the Media & Advertising division—the new IAC’ largest and most profitable unit which includes Ask.com, Citysearch, and Evite—revenues increased 28 percent to $216 million and operating income skyrocketed 192 percent to $31 million. This was largely due to better revenues per search query due to the Google relationship, and a slashing of marketing costs. (Those annoying and expensive TV commercials finally got canned). Ask has been able to hang on to iits No. 5 spot in search market share (4.7 percent in March, according to comScore) and showed the biggest percentage gain (12 percent) in search queries of any search engine

These numbers show the benefits, at least in the short term, of handing your search advertising over to Google—something Yahoo is learning itself through its limited test with Google to do the same thing. The question is what happens in the long term when market share erodes and Google does not have to pay so much for the privilege of taking away the search advertising business from its fading competitors.

IAC’s other businesses did not do so well on their own. Match.com saw a 10 percent jump in revenues, but a 13 percent decline in operating profits. And the other businesses are just a mish-mash of underperforming assets.

Senator Hillary Rodham Clinton scored a decisive victory over Senator Barack Obama on Tuesday in the Pennsylvania primary, giving her candidacy a critical boost as she struggles to raise money and persuade party leaders to let the Democratic nominating fight go on.

If Mrs. Clinton did not emerge from the bruising six-week campaign with a race-turning landslide — she still trails Mr. Obama in the popular vote and the delegate count — her victory nonetheless gives her a strong rationale for continuing her candidacy in spite of those Democrats who would prefer to coalesce around Mr. Obama.

Indeed, in her victory speech in Philadelphia on Tuesday night, Mrs. Clinton used the words “fight,” “fighter” and “fighting” repeatedly — not only to promise financially struggling Americans that she would protect them, but also to convey that she had the resolve and confidence to stay in the race.

As for Mr. Obama, the loss only hardened the determination of his advisers to overwhelm Mrs. Clinton’s campaign with his substantial financial advantage — he took in $42 million in March to her $21 million — and with the cold calculus that he is still solidly ahead in their pursuit of the 2,025 delegates needed to win the Democratic nomination. In his concession speech, he kept the focus on the presumptive Republican nominee, Senator John McCain, a subject Mrs. Clinton avoided in her address.

Incomplete returns from Pennsylvania showed Mrs. Clinton leading 55 percent to 45 percent, with her victory propelled by her strong performance among women, older voters and less affluent and less educated voters; among white union members with no college education, she won almost three-quarters of the vote, polling showed.

Even as she celebrated, Mrs. Clinton nodded to the stiff challenges ahead for her campaign, not the least of them Mr. Obama’s financial advantage. In her speech, she implored her supporters to log onto her fund-raising Web site and “and show your support tonight because the future of this campaign is in your hands.” (Campaign officials said late Tuesday that they were having their best night ever in fund-raising online, bringing in $2.5 million in less than four hours.)

And she also defiantly acknowledged the Democrats and the pundits who have called on her to end her candidacy.

“Some people counted me out and said to drop out, but the American people don’t quit, and they deserve a president who doesn’t quit either,” Mrs. Clinton said to fervent cheers and applause at her victory party, where she was joined by former President Bill Clinton and their daughter, Chelsea, as well as two key supporters in the state, Gov. Edward G. Rendell and Mayor Michael Nutter of Philadelphia.

While Mrs. Clinton repeatedly sounded economically populist notes in her speech, Mr. Obama touched on those themes but was also more expansive in his remarks on Tuesday night, sharply criticizing Mr. McCain, as offering “more of the same” of President Bush’s policies. Mr. Obama left Pennsylvania late Tuesday to make his remarks in Indiana, which holds its primary on May 6, along with North Carolina.

Returning to his long-standing themes of unity and hope, Mr. Obama said: “We can continue to slice and dice this country into red states and blue states. We can exploit the divisions that exist in our country for pure political gain. Or this time, we can build on the movement we’ve started in this campaign.”

Yet Mr. Obama also faces challenges ahead: According to Republican Party officials, party members in North Carolina — which holds its primary on May 6 — are considering running an advertisement against Mr. Obama that highlights his ties to controversial figures like his former pastor, the Rev. Jeremiah A. Wright Jr. That ad could have the effect of adding a racially divisive element to that Southern state’s primary.

The Indiana primary, on the same day, poses another make-or-break moment for Mrs. Clinton, according to several of her advisers, who said they would urge her to quit the race if she lost that state. Mrs. Clinton, Mr. Clinton and their allies have campaigned frequently in Indiana in recent weeks, and she has some important endorsements, including support from Senator Evan Bayh, the state’s former governor.

“She has to win Pennsylvania and Indiana — pretty much everyone in the campaign agrees on that,” said one senior Clinton adviser, who spoke on the condition of anonymity to discuss the campaign’s electoral expectations.

The Pennsylvania race turned into a mammoth political battle in recent days, with both candidates pouring millions of dollars into television advertising — much of it negative — and criticizing each other relentlessly on the campaign trail. Mrs. Clinton questioned Mr. Obama’s electability and attacked him for saying that struggling Americans were “bitter,” while Mr. Obama tried to shave her lead in opinion polls.

Mrs. Clinton faces major challenges: her campaign is essentially out of money, with unpaid bills piling up, and she faces growing frustration among some Democratic officials who would prefer her to end her campaign in recognition of Mr. Obama’s lead in the overall popular vote of the primaries and caucuses so far, as well as his continuing edge toward amassing the 2,025 delegates needed to secure the nomination. And Tuesday’s night’s results likely did little to cut into his edge on that front.

Mrs. Clinton’s campaign spent Tuesday planning a fresh fundraising drive to trying to capitalize on her performance in Pennsylvania, while other aides mapped out political strategy and staff movement to Indiana and North Carolina.

Democratic Presidential candidate Barack Obama’s dominance among the Web savvy has been well documented (he won Mashable’s Super Tuesday poll by more than 3:1), but some new stats from Nielsen Online show that the trend extends to online video as well, where he attracted 518,000 unique viewers on his web site in March, versus 351,000 for Hillary Clinton, and just 38,000 for Republican John McCain.

As you can see in the chart, Obama’s supporters also spend more than 3x as long watching videos than supporters of the other candidates when they tune in:

We’ll find out tonight whether all of video viewing pays off in the form of votes, as Pennsylvania holds its Democratic Primary.