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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.'"
Will have its addresses as the newest addition to my hosts file.
My humor is probably your flamebait
I wonder if Microsoft is still going to complain about Google's purchase of Doubleclick....
In fact, all replies to this story should be immediately compared to the comments of Google's purchase. It'll be interesting to see the people that backed Microsoft's position that Google did something evil now commenting on this news.
And people say there's no Microsoft-cult.. Pftt.
$1/per pair of eyeballs on the planet.
Trolling is a art,
i wonder what they will do with the avenue a | razorfish media/tech company also included in aquantive's portfolio.
What domains do Acquantive ads come from? I need to update certain tables. Thanks.
This strikes me as an expensive (but possibly effective) way to ensure that silverlight-based adverts get shoved in our faces.
The "cue the foo posts in 3, 2, 1..." posts will commence with no subsequent foo posts in 3, 2, 1...
But I think this is a sign of Microsoft Panicing.
IMHO is that since Google bought Doubleclick(Yuk) they have been lookin at getting slice of the Online Advertising Market.
However (Dons invertment managers hat) to pay a premium of 68% over yesterday's close for each shae is just plain crazy.
Ok, I know that there are billions of dollars in cash sitting in the Bank of Microsoft but really...
If I were a Microsoft shareholder (and thankfully, I'm not) I would be looking for some detailed explanations as to why the paid so much over the odds for this business. Its not as if they were in a bidding war (or were they?)
68% is just too heavy a premium to pay.
This has all the signs of panic.
Balmer wants to buy up an Ad company before Google buys them all. but 68%, Really. this is really bad economics and seems like we have returned to the Dot.Com Bubble days.
Google must be laughing their socks off.
I'd rather be riding my '63 Triumph T120.
"Google schools MS again"
Yeah, Google is much more efficient than MS in detecting and buying evil companies.
After seeing what MS has done in the past, I wonder why people are so happy to see another giant outwitting MS in its own game.
Oh, I almost forgot, Google, unlike Microsoft will not use the evil tactics of DoubleClick and they fight underground for human rights in China.
I saw a headline the other day where the kid who made facebook (just a website), refused to sell for $2billion.
Actually he refused to sell for $750 million to Viacom in January of 2006 and again in September, this time to Yahoo, for $900 million (although negotiations are presumably ongoing with the offer still on the table since neither side has announced publicly that they are pulling out of the deal). I don't know what the book value of the Facebook is, but if I were in his shoes then I probably would have sold to Viacom for $750 million provided that the offer was all or mostly cash AND that I could walk away at any time with my money if I didn't like the way that Viacom was running the business or if they were interfering...same for Yahoo. You can always take the money, shore up your financial position, and then found another company or simply retire to private life. These geeks are playing a very dangerous game by trying to squeeze that last few hundred million out what is already a pretty large pot of gold. Just imagine what happens when the deal falls through because you were stubborn and the market or technology changes and you are left with the burnt out shell of a dot.bomb company? Most people would probably have difficulty recovering from that type of a psychological blow...some probably never would. If you are ever in that enviable position then take the money and run if you don't like the way that things are going.
Of course, I am not in that position and it could be argued that given the amount of risk he took on to build the company to the point where he *could* sell it that he is either one of those people that thrives on insane risks and has a pair to match, he knows some *crucial* piece of information that we don't, or he is just plain stupid (unlikely). I tend to favor the risk taker hypothesis myself, that is probably why he controls an almost billion dollar corporation and I do not. On the other hand I would like to save enough money to die someplace warm when I am old and I don't fancy the idea of going broke a couple of times along the way on the outside chance that I might be in exactly the right place with exactly the right product at exactly the right time to make a killing, but that is just me I suppose.
"...On the other hand I would like to save enough money to die someplace warm when I am old and I don't fancy the idea of going broke a couple of times along the way on the outside chance that I might be in exactly the right place with exactly the right product at exactly the right time to make a killing, but that is just me I suppose."
Unfortunately, playing it 'safe' isn't necessarily either... so you may as well go for it.
I used to have a nice comfortable business, was conservative in its development, just to be safe, but still built it up over 8 years into a respectable concern, carefully planning my course with the idea of eventually translating it into a comfortable retirement sitting on a beach. A combination of events over a period of a little over a year however ended up in my not only closing the doors, but being severely in debt.
Over the next 3-4 years though, as I worked off the debt and re-assembled my life, I discovered that comfortable wasn't comfortable anymore. Part of it was anger that I was starting all over, but largely it was just the realization that conservative really carried no more guarantee than going for it. And going for it brings out a lot of inspiration. I feel much more alive.
I am now a couple of years away from retirement. A few years later than I had planned originally, but better off. I built a new business, and pushed it much harder. Not only is it more successful, but I've had a blast. And I'm looking forward to a much more interesting retirement. Instead of sitting on the beach I'm definitely going to be getting in the water.