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Google agrees to purchase web advertising company in cash

Google, Inc. announced today a definitive agreement to buy DoubleClick, Inc., an online advertising company, for a sum of $3.1 billion in cash.   The web search giant is acquiring the advertising company from San Francisco-based private equity firm, Hellman & Friedman along with JMI Equity and management. 

According to the press release, "the acquisition will combine DoubleClick's expertise in ad management technology for media buyers and sellers with Google's leading advertising platform and publisher monetization services."

Google says the combination of the companies will enhance targeting, serving and analyzing online ads of all types, benefiting consumers by:

  • For users, the combined company will deliver an improved experience on the web, by increasing the relevancy and the quality of the ads they see.
  • For online publishers, the combination provides access to new advertisers, which creates a powerful opportunity to monetize their inventory more efficiently.
  • For agencies and advertisers, Google and DoubleClick will provide an easy and efficient way to manage both search and display ads in one place. They will be able to optimize their ad spending across different online media using a common set of metrics.

"This transaction will strengthen our advertising network by expanding our access to publisher inventory and enabling us to serve the needs of a broader set of advertisers and ad agencies," said Tim Armstrong, Google's President, Advertising and Commerce, North America.

Google and DoubleClick have both approved the transaction, which is expected to close by the end of the year.  Speculation of the sale began several months ago when reports surfaced that a $2 billion dollar deal was in the works.

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Ad revenue
By Newspapercrane on 4/14/2007 1:04:01 AM , Rating: 2
If Google makes as much ad revenue as they say they do now... This is sort of troubling. I know to many of the people on the internet believe Google can do no wrong... but this is troubling. With more revenue, then Google will be able to purchase other things, something that I could see Google buying is Sourceforge, and perhaps other things. I don't think I could stand Myspace, Google, And YouTube All rolled into one.

RE: Ad revenue
By polaris2k4 on 4/14/2007 3:21:27 AM , Rating: 2
Well Google is pretty much past the point in business which Steve Ballmer would call as "critical mass", where they've developed their business to the point where they can milk as much as they can out of it. People seem to forget search is only the part in their business that supports advertising - their real cash cow. Doubleclick just reinforces that.

And in to keep growing at the rate they want to grow at, their only option is inorganic growth like this.

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
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