In a press release this morning, Microsoft announced the acquisition of advertising network aQuantive for $6 billion in an all-cash transaction. This acquisition from Microsoft comes after they lost DoubleClick to Google in a recent bid war. Yahoo! followed Google by acquiring Right Media for $680 million.
Microsoft CEO, Steve Ballmer said: “Today’s announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximize the digital advertising opportunity for all.”
Microsoft seems to be happy with the price they paid for aQuantive and they still have the fire power acquire more. Thanks to the $28.2 billion profits generated by them at the end of last quarter. Ryan from Cybernetnews speculates that Microsoft might be eying for Zoho, to cope up with the office-like applications being developed by Google.
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wrote, on May 19th, 2007
Hey,,, Nice post Thilak,,,,So now Google ain’t gonna take over the Digital Marketing rite, becuz i heard dat aquantive is growing at a very high pace. really want to see some competition there. They always fight like kids….lol
wrote, on May 19th, 2007
Hmm… Another fight back, huh? They never give up! Google got a tight and stubborn competitor here!
wrote, on May 20th, 2007
I hereby officially declare a digital shopping frenzy. Only multi-billion dollar conglomerates need apply.
wrote, on May 23rd, 2007
This is big time news for anyone into digital media advertising.
Microsoft won’t give up so easily and leave the entire market to Google.
wrote, on May 25th, 2007
Maybe Microsoft should focus on improving their own products a little more! It seems like they just try to keep stock holders happy by hanging with G on paper. They need to make their web services a lot better, especially search.