Google buys DoubleClick for $3.1 Billion
marvinalone writes "The New York Times reports that Google has purchased DoubleClick. That seems to be the conclusion to the speculation we've talked about earlier. From the article: 'Google reached an agreement today to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year.'"
Microsoft is teh loser.
Now Microsoft's anti-spyware will absolutely flag it!
...Rob
The American Dream isn't an SUV and a house in the suburbs; it's Don't Tread On Me.
Google is the new Microsoft. :^)
DoubleClick got owned!
no, really!
The theory of relativity doesn't work right in Arkansas.
Huh? Anyone remember when DoubleClick tried to tie their cookies to privacy data a few years ago - now those people are in Google management. I fear the evil is creeping in the side door...
John 17:20
Doubleclick is still blocked in every way, shape, and form available on my browser.
Yes, I am a smart ass; it's better than the alternative.
On second thought, there's probably not a safe place IN Balmers office. LOL :-)
LoB
"Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
...as if millions of chairs suddenly cried out in terror and were suddenly silenced.
3.1 billion to pretty much lock up the on-line advertising market. I wonder what percentage of the on-line advertising market will push Google into Monopoly territory. I would guess they are getting pretty close.
I wonder how long until it becomes obligatory to hate Google...
... "Do no evil?"
Every doubleclick host that I can identify is permanently blocked here for web bugs and Dartmail. I don't see that changing any time soon, either.
One could hope that Google will change Doubleclick's behavior before putting their own name on the services.
I sincerely hope Google will simply replace all DoubleClick-crippled sites with AdSense. DoubleClick's tracking cookies are the reason I block web ads.
Gootube was easy.....
Doogleclick?
Doobleclick?
Goobleclick?
Youtoogleclick?
If they clean house (like they should), do they still turn a profit? Or do they eat less of a loss than if they left them alive (as broke and limping as they were)? They do get their clientèle, which is good for them. They also get a larger (if almost all) of the internet advertising market...
Schwab
Editor, A1-AAA AmeriCaptions
"its trouble-dick! i tell you!" - George FKR Bush
Caesar si viveret, ad remum dareris.
eh. i am actually a rocket scientist (and yes my talent is wasted here). The answer to your rather obvious question is "when people stop buying their shares".
Caesar si viveret, ad remum dareris.
Ok - so maybe that's harsh. But $3.1billion for the company? That provides a technology Google have already? I'm sure the decision makers over there know a lot more than me (hell, I've been drinking for the last eight hours) - but key Doubleclick partners (such as News Corp) aren't going to be too hot on Google suddenly knowing their ad business inside out. This smacks of splashing the cash to kill competition - had Microsoft picked up Doubleclick, that would have presented a serious challenge to Google's display ad syndication business.
Here you go. The PDF FAQ they put there confirms the terms: $3.1 billion. Apart from that, I second/third/fourth the previous comments: zero impact here, DoubleClick has been on my blacklist for years now, by any means available.
(this is not a
...it's still called shit.
It's nothing but crumpled porno and Ayn Rand.
As I said above, no Google don't have a monopoly on online advertising. Not even text based pay-per view.
Yahoo have got into the business as well (when they bought Overture I think). There are also heaps of others, from my Adblock list,
adsdk
fastclick
bluestreak
adsfac
mediaplex
serving-sys
tribalfusion
And heaps more. Not to mention all the individual site advertising (http://ads.guardian.co.uk for example).
I wank in the shower.
I was once looking for information on Nigerian scams, a.k.a. 419 scams, a.k.a. advance fee fraud scams. And, I kid you not, among the ads on the Google results page for "nigerian scam" was an ad that read:
I found the same type of ad for "419 scam," then did some random searches, and at the time, eBay seemed to have picked up a whole bunch of two-word phrases.
I would just to point out that the paltry amount which would bring that $3.1 billion from "almost double" to actually double is $200 million dollars. That just plain sucks.
Goddamn corporations and their stock, even if it is Google.
vampirical
Can someone explain how Doubleclick is worth $3.1 billion? Are they hoping to receive this amount of money back in revenue off Doubleclick, I'm confused as to how they can price Doubleclick at that amount.
From my limited knowledge of banner ads, the click through rate is typically 1%, and anything from 10c to 50c per click through.
Youtube obviously has massive potential, but Doubleclick?
You'd lose that bet. I block Doubleclick but not Google because I don't find Google's ads to be invasive and annoying.
"If you make people think they're thinking, they'll love you; But if you really make them think, they'll hate you." - DM
I'm not in total disagreement with you, my googlove notwithstanding. I don't get it; what's the hook. I haven't made an http request to doubleclick in years, on account of m4d hosts file management skillz.
Usually when google picks up a property, it's one with a bit of vision. Does DC have something technologically interesting under the hood somewhere?
My turnips listen for the soft cry of your love
I thought it was Google who would bring balance to the Force, not leave it in Darkness.
:)
I don't bother with blocking ads. To emphasize the point, I'm on dial up. (I do have flash block installed in Firefox, so it only runs when I want it to, getting rid of the stuff that makes noise)
Nerd rage is the funniest rage.
I keep seeing comments about doubleclick being blocked. So? You account for such a small portion of the userbase why would google care? They didn't buy doubleclick for the domain or technology anyway, they bought it for the customers. Most likely they'll convert all of their doubleclick accounts to google ads, which far fewer people block. They also bought it to be a cock block against other companies trying to get to the #1 position of internet advertising.
If an officer ever threatens to taze you, say you have a pacemaker.
You think you are in pain for having to swallow that our great Google bought doubleclick?
Ha, you could imagine it like this: The people at doubleclick just got paid 3.1 BILLION dollars.
By Google.
Have a great weekend.
This may have been part of a strategy to make sure that nobody else bought DoubleClick first. The last thing Google wants is for Microsoft to try to take over their most profitable field. Even if Google never touches DoubleClick's materials after this, they don't have to worry about someone else having that "advantage" over Google.
why? the name's probably not gonna be around for long
Microsoft's financials are easy to find. 6.8 billion in cash, 22 billion in short term investments, and 9 billion in long term investments. Google, for comparison, has 3.5 billion in cash, 8 billion in short term investments, and 1 billion in long term investments. [numbers as of dec 31, 2006]
Do you even lift?
These aren't the 'roids you're looking for.
What exactly is the dollar value over which things become evil? I missed the indoctrination meeting when I signed up for Slashdot.
Slashdot - where whining about luck is the new way to make the world you want.
While I agree with the $3.1 billion probably being far too much for DoubleClicks assets... I disagree with the block list thing, as the vast majority of Internet users do not use AdBlock or any other similar ad blocking software. Yes, a lot of us geeks use that stuff (I don't, as I just ignore them), but then a lot of us geeks are the ones least likely to click on ads and buy the stuff they're selling. Now as to the reason why they would be willing to pay the $3.1 billion for DoubleClick, it's clearly to prevent Microsoft (and/or Yahoo!) from buying a sizable chunk of the online advertising business, plus it now increases the size of Google's very profitable ad business.
Read my blog posts on usability.
I fully expect to see "Google buys USA for 12.4 trillion"
..with that?
I don't even know what 3 billion dollars is. the number is too mind bogglingly big.
what good things ('do no evil', huh?) could have been better accomplished rather than put so much money into an advertising firm's pocket?
--
"It is now safe to switch off your computer."
The best one I saw was something like
Babies
Looking for Babies?
Find exactly what you want today
www.ebay.com
From the article:
It also gives Google access to the data that Doubleclick has acquired. Doubleclick will probably be no more and merge into Google's Adsense.
\
A good point, if poorly executed.
The cynic in me is wondering: What if this was a Microsoft ploy. Everyone said Google was bidding to drive the price up for MS... what if MS was only feigning interest so that google would drop 3 Gigabills on something that is pretty much blocked to hell and back by anyone with clue.
Imagine the targeted tracking they can do by correlating your Google Searches with Doubleclick targeted advertising! I know we regularly threaten to do this and never mean it, but how are the other search engines these days? (Don't say Clusty.com: I tried them and linking to the 'wayback machine' doesn't qualify as [Cache])
Official Google Blog: Next Step In Google Advertising
I fear the evil is creeping in the side door...
Really, I thought home-grown "evil" emerged when they decided to scan your email in order to better target advertising. Of course, they can argue you volunteered to have your emails scanned.
The Official FAQ for the announcement claims that they did this because "Our goal is to make advertising on the internet work better: better for users with less intrusive ads and better privacy protection, better for advertisers with greater accountability and effectiveness, and better for publishers with improved monetization and cleaner site integration." In other words, they thought DoubleClick was intrusive, but they're too nice to say it.
Let's say they paid in $100 bills. That's 31,000,000 bills. Say each pack of 10 bills weighs 1 gram. That's 3,100,000 grams, or 3,100kg. That's about the weight of a car. In $100 bills. Conservatively.
Does that help?
http://www.skullsecurity.org/blog/
and look at the paid adds on the right. The RIAA did it, why can't we?
I don't know anyone who doesn't block doubleclick.
All the more reason to support the folk(s) over at Perceptive Pixel. Let's get rid of clicks altogether. I'm talkin' to you, too, Amazon!
It goes from God, to Jerry, to me.
With a stock price above $450, Google needs to start making a lot of money to keep the shareholders happy
These are some of the things molecules do...... given 4 billion years -Carl Sagan
..."Advertise no evil"
Hope so. But then again, I hope for world peace as well.
-- In the beginning was the WORD, and the WORD was UNSIGNED, and the main(){} was without form and void...
their baseball cards. Seriously, with the amount of restrictions on those shares, I don't understand why people started buying them in the first place. Never pay dividends, and are a second class set of shares that do not give any control over the company. What are you buying?
Well, besides a new home if you got in when they were at 85. Damn inane stock market.
Relax I just want some peanuts.
I dont know anyone who doesn't block either BUT to be fair I generally only know smart educated people.
unzip; strip; touch; finger; mount; fsck; more; yes; unmount; sleep
You post on Slashdot so you probably don't know too many people in the first place :-P
In reality though, I know a lot of people who didn't even have a pop-up blocker until it was finally added to Internet Explorer. Blocking ads on web pages? I don't know a single non-geek who has an adblocker installed. If they're not interested, they just ignore them.
something that is pretty much blocked to hell and back by anyone with clue.
You mean 1% of the population? Outside of my household, I haven't seen a single ad-blocker installed on anyone's computer. Most people just ignore the ads.
Doubleclick is still making hundreds of millions of dollars in revenue every year, so they clearly still have a viable business model, however evil you think it is.
Google News offered me this link, a way to see the story without logging in.
[javac] 100 errors
Enough with the double negatives. I don't not know anybody who doesn't not block doubleclick neither,
except the other 90% of internet users that don't "block" anything.
Frankly, I prefer the company of nitwits.
Based on your careful due diligence, no doubt. Or is that just some number you pulled out of your ass that "seems more reasonable" to you.
So what you think happened? Google called them up, got a quote of 3.1 Billion, and said "OK, if that's what you think it's worth."?
Pretty soon yahoo and such will move from storing their ads on ads.yahoo/com/ad/ad.jpg to yahoo.com/$RANDOMSTRING.jpg. That way you won't be able to block them using filters unless you also want to block all images from that site. Which would be kind of annoying, especially if they stored their email interface graphics in the same format.
Hasn't happened yet though... six years ago when I started blocking ads I thought it would become inevitable.
The question for me is what is 3.1 billion US dollars in Google dollars? Google's stock is way over-priced for the money they pull in, so does that mean that when they buy out seemingly expensive companies they're actually getting a good deal?
Anyone who understands the economy feel free to correct me.
// MD_Update(&m,buf,j);
They traded stock for YouTube, they paid cash for DoubleClick.
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
Sigh...
After calming me down with some orange slices and some fetal spooning, E.T. revealed to me his singular purpose.
I haven't seen a doubleclick ad in years thanks to adblock
Oh, and just for this, I am going to set up adblock to block google ads too
It's not their assets that Google wants, it's their clients.
Burn the land and boil the sea, you can't take the sky from me
That's what I meant by assets. I mean those are the main assets of any advertising firm, or the way I see it anyway.
Read my blog posts on usability.
Then google just bought a competitor of adwords and benefitted anyway.
It was a win-win situation, buy it and you increase your market share - lose it, and you bump up the price to a level that microsoft and yahoo have to shell out far more then they planned to had google not entered bidding.
If you can't be evil, buy 'em.
I'm a geek, nerd, whatever.
... yourself...
I don't block ads. If a site is an Ad farm, I won't go there, period.
If a site has one or two ads that I can tolerate, that's cool.
I do block popups though, if you can't present your content with the window that "I" allowed for you to create on my desktop, you can go
There are good blogs (term, ugh) out there who solely rely on ads to maintain their blog, think about what "you" are doing to them by blocking the ads.
I hate flashy annoying advertisements as much as the next guy, but the way I think of it is that it's up to the people behind the website to control how much crap they put on their page. If we (me and the web site owners) don't agree on the quantity, I close my browser window (deal is off)..
Keep in mind, though, that the cash was likely raised during their public stock offerings. Therefore Google's inflated stock price does play a role in their continued ability to acquire companies.
As other people already said, you're very wrong. :-) I don't see the point of ad blockers. I used one back when I had dialup because it actually took a significant amount of time to download the ads. (The graphical ones, at least.)
;-)
But these days that time is not really noticeable anymore. And since I developed an "ad blindness" years ago already there's no need to block ads in software, I don't notice anymore if they're there or not. Works a lot better than getting upset when the adblocker mist an ad again. My blindness works for any ad.
A fool and their money are soon parted, and it remains to be seen if Google have been foolish with their money. Also keep in mind that cash is ...umm... cash, regardless of how one (legally) aquired it.
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
Years from now, we'll look back and wonder why the heck were we cheering for this monster advertising company who now has the ability to track us everywhere on the Net we might be so strong is its stranglehold on us.
Yes, a lot of us geeks use that stuff (I don't, as I just ignore them)...
I do too, until an unresponsive ad page prevents the main page from loading, as what happens here. Because of that, I broke down and installed the ad blocker. If they want me to see their ads, they have stop attempting to steal my time. It's the only nonrenewable resource there is.
What?
> > "they can argue you volunteered to have your emails scanned."
> Well, you agreed to the Terms of Use. Don't like 'em? Go to Yahoo.
This viewpoint only holds water if gmail is a self-contained universe, which it isn't.
For example: I don't use gmail. I didn't agree to let Google scan anything. And yet, when gmail users send me mail, then mail intended for my inbox is scanned by Google. If I send a gmail user mail (either directly or if someone forwards their other domain to a gmail account) then mail from my outbox is scanned by Google.
Tell me again how I consented to this...?
Addressing the larger concern, underneath the shiny, "non-evil" exterior of Google, is a targeted marketing company. Yes, an Internet-age, geek-friendly and trendy targeted marketing company with a less worrisome history than, say, Microsoft, but a targeted marketing company just the same, with all the privacy risks that entails. Make no mistake, Google is in the business of collecting and selling information about you for its own gain. And it will do so with your consent or without it.
"Also keep in mind that cash is ...umm... cash, regardless of how one (legally) aquired it."
And I certainly wouldn't claim otherwise. My intention was simply to expand upon the information you presented so as to provide a more direct answer to kestasjk. Nothing personal.
Unless you are looking for something who's name is part of a product or ad, you will get very few results. That link is a fairly common phrase I would think, and yet look how little info I get on it. And none of them showed the command I can't remember. If you need a product, go to Google. If you need information, ???
What?
Mental image of Steve Balmer communing with the ghost of Bruce Lee:
"You must become one with the chair"
> The PDF FAQ they put there confirms the terms: $3.1 billion
But are they real dollars or Internet dollars?
First YouTube and now this? Someone should tell Google the Bubble is over. Meanwhile ask them if they want to buy your MySpace page: You'd probably get upwards of half-a-mil.
On the other hand, every time I've mentioned ad blocking to a non-techie, their reaction is "You can do that???" followed by them begging me to set it up.
I still have more fans than freaks. WTF is wrong with you people?
Really? Could you show me yours?
a nswer=6350
Adsense adds a 30-day-expiring cookie to your machine if you click on an ad, and adds no cookie when you just visit sites with AdSense -- presumably to prevent DoubleClick-esque scandal.
https://adwords.google.com/support/bin/answer.py?
Just a few months ago, calling "google" "evil" would have made all mods go in "-1:flamebait"-mode.
:)
Now, I see a lot of posts that are actually modded insightful. Does Google know that their esteemed fans on Slashdot are slowly turning ?
Would that make certain employees of Google scratch their head and dust off their resumees ?
Would that lower stocks somewhat ?
Anyone want to buy put-options for Google ?
Slashdot: stuff for news, nerds that matter, matter for news, stuff that nerd
The problem with the "core business" model is when people invest in your business (which covers a lot of businesses out there). Dividends from a company's profits are okay every year, but people want to see their stock triple in value.
And that doesn't happen if a business that dominates a market sticks to their "core business." Stock doesn't increase much if you go for the last 10% (or whatever) of the OS market share. Can you define their core business? Once you ID that, can you identify a clear path they can take to double the value of their company by pursuing that core business further? There are some obvious answers, and smart-ass answers. But I think they need to find new paths in order to grow further.
So Microsoft may look confused to you, but if you have billions of $$ in your war chest, you can afford to put many irons in many fires. If somebody else in any given realm gets successful, you at least have a beachhead from which to expand into the new, profitable territory. That's smart, although maybe less romantic than sticking tight to Windows until both Windows and MS die together.
What about the technology? Not that doubleclick's non-existing ad technology is worth that much, but maybe their patents are...
Search RapidShare and MegaUpload!
I know that's the odd part of it all. The YouTube deal was brilliant insofar that within 24 hours, Google's stock increase ment a market cap of an additional 4.8 billion on a 1.5 billion dollar (stock) deal. So they made over 3 billion in valuation nearly instantly. This deal being cash is a bit more strange.
Perhaps if they succeed in getting their TV and Radio ad empire rolling they can threaten content providers trying to pull clips from YouTube with online and traditional advertising boycotts. That'd be cute actually...
Plus if Google merges the networks (Definately forseeable) then suddenly all those DoubleClick ads are served from Google's domains, which many people *don't* block because they're pretty unobtrusive and actually match what you're looking at.
I don't know about you, but I'd rather have Google knowing my browsing habits than DoubleClick. And I definitely would rather have Google know them than Microsoft.
How many people can read hex if only you and dead people can read hex?
Exactly. That's my point: that Google's (and the GP's) insistence on the magic of the "terms of use" and the user's ability to simply "Go to Yahoo" is an illusory fix. Business models that rely on getting consent from just one "endpoint" (as you put it) are extremely suspect. This is the type of thing that made Doubleclick so unpopular.
I worry that Google is holding out the gmail "terms of use" with one hand, trying to entice as many people as possible to use the service by saying that it shows how Google respects privacy and isn't "evil," while with the other hand it is really operating on an assumption much more like the one you have set forth: anything sent through email is largely fair game as long as someone at an "endpoint" somewhere signs on with Google.
Simply "going to Yahoo" wouldn't address the core concern here, any more than Doubleclick's "opt out" webpage protected the privacy interests of users that didn't even know Doubleclick was tracking their surfing activity. Companies that rely on such things for their business model are inherently suspect from a privacy standpoint. Google may not be evil, but my belief is that we should, perhaps, start with that assumption.
How is this a troll comment? Google clearly abandoned the 'do no evil' stance as soon as they started making a boatload of money.
I care that sites I like don't charge me money. I like that sites that provide useful or entertaining content can continue to exist.
I don't block ads, because that would conflict with the above.
--( I do block flash though, with FlashBlock )
Do you click on the ads?
You know you're not doing your blogger any favors if you don't click through, and buy something.
Take off every 'sig' !!
Do you really believe what you wrote there? If so I am sad for you. Moral relativism is a fiction born of post modernist (crap)thought.
Frankly the US government is just as evil as Google for even dealing with China at all.
Wasn't Google Desktop supposed to be good for blocking poppups and, in essence, ads and other crap? So now is it going to inject DoubleClick ads and crap at users, not to mention steal marketing information? More than likely they'll set it up to circumvent firewall and HOSTS blocking. I guess I'll continue to say 'no' whenever an install subtly asks, "do you [i]not[/i] want to install Google Desktop". But that's another rant.
However, at the school district in my area, DoubleClick is automatically blocked at the edge router level. I'm not at all sure if this is legal, but it's definately been done.
I'm sure at least a few small/medium business network admins also automatically block DoubleClick due to their reputation for terribly invasive and questionably legal data-mining.
So quite a few people probably have DoubleClick blocked without even really knowing or noticing it.
I thought of this a while ago. They'd have to create a server-side script for clients as otherwise we'll just continue to block the JavaScript that decides what ad to view instead.
...I think about this stuff way too much. -_-
Or this idea: Create a server-side script, perhaps in PHP or something similar, that will prevent continued pageload until the advertising content, traditionally placed at the top of the page anyway, is loaded and displayed. Maybe combine them.
Now, both ideas are subject to the ads themselves actually being displayed on the page, and what I think would happen would be that Adblock et al would simply look for images coming from Yahoo / Google outside of their own domains and block them that way. They could even have more complicated whitelisting for Google searchboxes and such to differentiate them.
It's better to vote for what you want and not get it than to vote for what you don't want and get it.
- E. Debs
"This deal being cash is a bit more strange"
We are talking about DoubleClick, see the comment below redarding unmarked $100 bills.
And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
How is Google's stock over valued? They have a forward P/E of 25.31, Yahoo has a forward P/E of 43.03...So Yahoo is actually more expensive, though Google is growing at a faster rate...the only reason Google's stock seems so "expensive" is because they've never split their stock. The huge price of at one time $500+ a share scares off investors that don't know how to measure true valuation. If anything Google is cheap with it's monster growth.
On the opposite extreme are Google ads, which are basically unblockable because they are text. Or at least let me put it this way: you'd need a pretty good and constantly updating AI in order to block text ads, and except as an academic exercise, coding it and maintaining it is not worth anyone's time.
So I'm actually a little mad that Google bought Doubleclick because I was so happy with Doubleclick being blissfully out of sight and out of mind. I worry it won't stay that way for long.
I don't think anyone wants to take this step forward in the arms race. Once ad filters get Bayesian, it's only a matter of time that techniques developed for spam filtering will be used to find and refuse to display text ads. Then Capitalism collapses.
The slow slide of Google is clearly underway. This move is evil. Even if Google did nothing more than shut down all the dc servers permanently, this would still be evil. Why? Because they have enriched the people who profited from the DC hellspawn. Google just moved from my "Strongly Approve" list of companies to my "Hold" list.
Well, I would be interested in the source you site, and I would tend to agree... but for a smaller business than the ones we're talking, not for businesses with monopolies or a very large % of the market share of their core business.
If you look at Google as a search engine business (which another poster appropriately points out is probably not quite accurate), they already have a good-sized portion of the market (64% and growing, according to one source).
If Google goes for the last 36% of the search market (because they are a good business by your standards and only focus on their core), then at best Google can only increase its value by just over 56%. That means that, with a lot of assumptions thrown in, if it takes 10 years for Google to monopolize search, you get 4.6% increase in stock value each year. That isn't going to even beat inflation. (Of course if they monopolize, then not only can they drive prices up, but they can also get some government regulators interested.)
Now you own stock for a second company, MS, whose core business is operating systems. MS has 94% of the market share, based upon Wikipedia. But close enough. Say they just focus on their core business, and it takes them 5 years to totally monopolize their market. That yields about 1.2% per year. Wow.
So now you have two stocks, both for companies who focus only on their core business. But you'd have a better investment with a money market or CD at your local bank. Do you see my point now about these big businesses dabbling in other things (never too far from the core, but definitely not in the core) to see if something else pans out?
I think this was a dumb move. Google were already the online advertising giants, and if they wanted to go into banner advertising, they could have done it much better than Doubleclick (targetting, workarounds to blocking, etc.). So what better way to bitchslap Microsoft than to let them buy doubleclick for 3B and introduce a superior competitor that takes away all of Doubleclick's customers? Google could definitely do that for far less than $3B, and another side benefit would be watching MS blow $3B on a dying company!
I dont know anyone who doesn't block either BUT to be fair I generally only know smart educated people. Speak for yourself there. All the educated people I know are stupid educated people. :P
I don't know anyone who doesn't block doubleclick.
Me neither : (
https://www.eff.org/https-everywhere