Microsoft Pays $6B for Online Advertiser

May 21, 2007: After missing out on DoubleClick to Google in April, Microsoft has just announced that it has bought online advertising specialist aQuantive for US$6 billion (AU$7.3 billion).

The deal comes in at almost double the US$3.1 billion Google paid for DoubleClick, an eye-popping sum in itself.

AQuantive’s system enables advertisers to target online ads with its Atlas technology unit, and also operates an online network that both connects buyers and sellers and targets ads to site visitors.

Last month analysts noted that the loss of the DoubleClick deal could cut off Microsoft’s air supply in the online advertising world. Despite still lagging behind Google and Yahoo! in the field, the aQuantive purchase definitely puts Microsoft back in the game.

On the other hand, other analysts are questioning whether the deal is right for the software giant, noting that (next to the extremely high purchase price) it is curious for Microsoft to want to dive into a business that sends customers away to competitors with a click.

For good or ill though, one thing is clear from the recent flurry of activity in the sector, and that is we can expect a whole lot more online advertising to come.

Comment on this story