Microsoft Hot to Buy Internet Advertising Company
Posted on May 18th, 2007 in Advertising aQuantive, Google, Internet Advertising, Internet Marketing, media, Microsoft, Multimedia Marketing, on-line advertising
Sources at Microsoft Corporation said today that the Redmond, Washington based software giant will pay approximately 6 billion dollars to purchase the on-line advertising company aQuantive. Microsoft has continued to struggle in the on-line advertising market while competing against the mega-giant Google. With its AdWords and AdSense programs, Google currently dominates the lucrative Internet advertising field, a rapidly expanding Internet cash cow returning unprecedented profits reminiscent of the web’s pioneer days.
The deal comes as no surprise, occuring just after Google recently wrestled the purchase of DoubleClick away from Microsoft for a mere $3.1 billion. This was quickly followed by Yahoo’s recent buyout gambit for RightMedia and the 24/7 RealMedia purchase by advertising giant the WPP Group. Still, it’s Microsoft’s largest acquisition ever and the latest in a flurry of deals for on-line advertising firms by big Internet and media companies. According to Chris Dobson, head of global advertising sales at Microsoft, “If you ever had any doubt that Microsoft was going to be big in the on-line advertising space, this should make it clear that it will.”
Microsoft recently tried unsuccessfully to buy DoubleClick and after being outbid and outmaneuvered by Google for that acquisition, faced substantial competition for aQuantive, which explains the inflated price tag for the Seattle, Washington based ad company. Although Microsoft is paying around 10 times the estimated revenue for aQuantive in this latest round of leviathan deal making, it was obviously determined not to be outbid by arch-rival Google or anyone else this time. While Wall Street saw the price of Microsoft stock drop slightly, predictions that Internet ad spending will increase by approximately 28 percent this year to a total of $31 billion globally, indicate the potential for future growth in on-line advertising is strong and expected to expand.
Unfortunately, the result of all of the above mentioned activity, be it Microsoft’s or Yahoo’s or Google’s, will leave Internet advertisers and online marketers with fewer alternatives for themselves and their clients. It’s interesting to note that while history is being crafted in these monstrous deals, history is also being ignored or even worse, disregarded.
Shouldn’t we know by now that we’ve already been taught that true strength lies in diversity? Doesn’t anyone remember the dinosaurs? History teaches that once upon a time they were really big and they were really dominate, until one bad afternoon with an asteroid came crashing down and put them all on ice.
Stay tuned as Web 3.0, “The Only-Net” continues to evolve.
© 2007 DM Jackson - All rights reserved
