in General

Microsoft’s smart preemptive tactic by buying aQuantive for $6 billion

MicrosoftIn what’s termed to be a direct response to Google’s acquisition of DoubleClick for $3.1 billion, Microsoft’s purchase of aQuantive for $6 billion is coined by industry experts as a very smart move.

The Microsoft-aQuantive deal, which is the largest deal in the advertising industry, is indeed a desparate attempt to match Google’s advertising muscle and perhaps to recoup their failure in their earlier multi-million dollar bid for DoubleClick. Microsoft offered $66.50 per share for aQuantive, an 85% premium to its closing price on Thursday.

Kevin Johnson, president of Microsoft’s platform and services division, said: “It is a big bet on advertising monetisation for the long-term growth of the company and this is a significant step forward.” He said the online advertising market would be worth $40bn this year and was growing at 20 per cent a year. – MSNBC

aQuantive, of Seattle, has about 2,600 employees, and reported 2006 profit of $54 million on sales of $442.2 million. aQuantive brings Microsoft technology and services, but not the much needed half a million advertisers and traffic network to Microsoft. – VentureBeat

REFERENCES

UPDATES

2007 20th May:

Washing Post have an article which pins the strategy of Microsoft’s $6 billion purchase of aQuantive and calls it a core moneymaking strategy of the digital economy – watching you.

The Internet’s high-stakes advertising derby shifted into overdrive during the past month as four of the industry’s behind-the-scenes players (Google Inc., Microsoft Corp. and Yahoo Inc. – and WPP Group PLC) agreed to takeovers. The deals’ combined price totaled $10.4 billion, exceeding the total amount of money spent on Internet ads just three years ago. Read the article in Details.

[poll=20]

  1. Hi from argentina.
    would love a joost invite . thanks!

  2. Hi from argentina.
    would love a joost invite . thanks!

  3. I think it is a smart move, but it will not solve Microsoft's problems on the Internet market place. Lets see how the Yahoo talks will end.

  4. I think it is a smart move, but it will not solve Microsoft's problems on the Internet market place. Lets see how the Yahoo talks will end.

  5. Microsoft paid way too much for this. They must be desparate. As always, MS is always a follower and not the inventor.

    Can you please invite me to Joost?

    Thank you,
    Lao Vision

  6. Microsoft paid way too much for this. They must be desparate. As always, MS is always a follower and not the inventor.

    Can you please invite me to Joost?

    Thank you,
    Lao Vision

Comments are closed.

Webmentions

  • Meandering Passage: This weeks random topics of interest : Meandering Passage May 23, 2007

    [...] to Google they must of decided that they were going to get aQuantive at any cost.  Maybe it was a smart preemptive move?  It sure makes DoubleClick look like a bargain for Google [...]