On Friday, Google announced its acquisition of DoubleClick for $3.1 billion is cash. Other players like Microsoft, Time Warner, and Yahoo where also involved in the bidding war, but they lost for Google. If Microsoft had won DoubleClick, it would have put them in a significant position in the online advertising business, but they didn’t win. Now Microsoft is fighting against the deal and expects companies like Yahoo and AT&T to support them. In an interview with New York Times, Microsoft’s general counsel, Bradford L. Smith said:
“The purchase of DoubleClick by Google would combine the two largest distributors of online advertising and thus substantially reduce competition in the advertising market on the Web.â€
However, Google’s chief executive, Eric E. Schmidt dismissed Microsoft’s claims by saying that they are not true. Microsoft was joined by AT&T which said antitrust authorities should take a hard look at this deal and implications. Google already owns a significant portion of online advertising business and if this deal goes through, Google will be the leader of online advertising business by 85% of the ad distribution market.
Last year, Microsoft was the target of an anticompetitive claim by Google, but now we see the tables turned. Yahoo was also involved in the bid war, and they are expected to raise their voice against the deal as well.
From a neutral end, I’m not happy with Google dominating the ad business with over 85%. What do you feel about the deal?
Source: Cybernetnews
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wrote, on April 17th, 2007
Personally, I think it’s a good thing. Google has been very generous with it’s adsense program and I believe they will continue to be generous. Although there is the part to consider where google is now able to create policies that can screw many people, and no one can stop them.
wrote, on April 17th, 2007
That’s understood. Microsoft should do everything to break this entire deal that will even astrenght Google position as the leading online advertising engine.
I fully support your concern, Thilak, i believe that this monopoly will affect the industry and wish this deal won’t really happen.
wrote, on April 17th, 2007
I am not sure about this - I do not know how much of a market share DoubleClick had.
In any case, assuming Google has a market share of 85% of the advertising market, it is not a good scene for small publishers and small advertisers. A competitive market is always better than a monopoly.
But we need to heed carefully to the words as the allegations are made by a organization that itself was under the scrutiny of antitrust authorities.
All this make it imperative that small publishers should start banding together and venture out on their own in getting advertisers.
wrote, on April 17th, 2007
Microsoft are always trying to pull Google’s leg using their money and their power. Google is not trying to compete with microsoft but they are just trying to take over the ads on internet. They don’t want to have big competition so they bought Double Click. Although I don’t really know about Double Click. Anyone want to explain me how DoubleClick works…
Thanks Heapzz
wrote, on April 17th, 2007
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wrote, on April 20th, 2007
Go figure … a Search Engine Buying a Media Company that owns the 3 largest SEO Firm in the world … I don’t know if the deal will go through … or if they will have too much pressure to sell off the SEO side of the business!
Darin