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.'"

Comments

Colour me confused..

[ratboy666]

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?