Slashdot Mirror
Microsoft Buys Ad Firm for $6 Billion
bain writes "The BBC is reporting that Microsoft has agreed to buy the digital marketing firm Aquantive, in what will be its biggest ever acquisition. The software giant spent almost $6 billion acquiring the agency, in its first bid to tackle the online advertising market. 'The deal is expected to be completed in the first half of 2008, subject to regulation. Microsoft said the expensive price tag was worth it to access the complementary technology of Aquantive. The firm will continue to operate from Seattle as part of Microsoft's online operations, and will help the software giant broaden the scope of services its MSN consumer internet unit can offer. Microsoft is the latest technology firm to pounce on the shrinking independent online advertising sector.'"
aQuantive has ~900 million in assets, and a current shareholder equity of ~600 million. Net revenue is the first quarter of this year was ~14 million.
Microsoft is aquiring them for 6 billion? Sounds about as dumb-ass as Google with DoubleClick (what, 31x premium?).
aQuantive stock is now 64.75 *up 27.88*. I missed it.
As a Microsoft shareholder, I don't like this. What a waste of money! I mean, paying 3 billion would be high, but 6 billion?
Just another "Cubible(sic) Joe" 2 17 3061
If Microsoft wanted to use Aquantive's patents against Google the last thing that it would do is buy the company. Microsoft almost certainly infringes on some patents that Google owns, especially if you throw in Windows and the rest of Microsoft's software. The Holy Grail of patent litigation is to produce a patent that is being infringed by Windows as the potential payoff can be enormous. If Aquantive sues Google then the possible damages from a counter suit are much lower than the possible damages from a counter suit against Microsoft. If this was about patent litigation then Microsoft would announce a "partnership" (or maybe it wouldn't even do that) and Aquantive would sue Google.
Microsoft is not going to sue any organization that has software patents over patent infringement as Microsoft almost certainly has more to lose than any other player.