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Microsoft picks up an internet ad firm for a hefty sum

 Microsoft Corp. announced today it will acquire aQuantive, Inc. for $6 billion, roughly $66.50 per share in an all cash transaction.  This will be the largest purchase the software giant has ever made, spending roughly three times as much money as it has on any other company.  The company’s goal is to provide the advertising industry with an internet-wide advertising platform and a set of tools and services that help its constituents bring in the highest possible return.

The acquisition of aQuantive will allow Microsoft to build and strengthen its relationships with advertisers, agencies, and publishers.  It will also help the software giant build and support next generation advertising solutions and environments such as cross media planning, video-on-demand and IPTV.  The combined technologies and portfolio provide for constituencies as follows:
  • Advertisers and ad agencies will benefit from a world-class media planning, buying and campaign management solution to drive maximum ROI and optimize their reach to audiences across the increasingly fragmented, interactive media landscape.

  • Media owners/publishers will gain access to best-in-class inventory optimization and monetization solutions across a full suite of rich media, video and targeting capabilities.

  • The broader advertising ecosystem will benefit from the leading interactive advertising agency, Avenue A | Razorfish, continuing to serve its impressive client roster, while also embedding the voice of the marketer into Microsoft’s next generation advertising solutions and services
"The announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximize the digital advertising opportunity for all.” said Steve Ballmer, chief executive officer of Microsoft.

The deal is expected to be completed in the first half of Microsoft's fiscal year 2008.  The acquisition is not expected to have a significant impact on the financial guidance issued by the company.  aQuantive will continue to operate out of Seattle as part of Microsoft's Online Service Business.

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RE: Let me go to the ATM
By phatboye on 5/19/2007 9:38:43 AM , Rating: 2
When you can buy a whole computer with monitor for under $500 and it comes with XP or Vista you aren't getting ripped off.

It is a ripoff when you figure that 1/5th of that goes directly to ms while the rest of that money is spread out for the hardware, software and tech support. ms takes a really hefty chunk out of the pie.

RE: Let me go to the ATM
By Treckin on 5/19/2007 6:09:02 PM , Rating: 4
Jesus, save us all. Or just the whiners.
Are you seriously saying that 200 bucks for an OS is a ripoff? He had a totally valid point; One spends more than that on expendable goods possibly in one day. He wasnt directly comparing the prices of Windows ot the price of gasoline. He was stating that if you spend 200 dollars at safeway EVERY WEEK, for the next 3-5 years (approximatly $40,000 for 4 years), how is it hard to justfy spending $250 on a one time investment for that same timeframe?

What in gods name do you care what MS does with the money after they have it? If you recieved a quality product (debateable, sure), with excellent customer support (not debateable, esp for developers), what is there to gripe about? Why not go on the United Food Workers forum and tell them to start offering food that, after an initial investment of $200, doesnt run out for 3-5 years. And tell them to offer free updates as better genetically engineered corn comes out... And to have a hotline when you get food poisening... (I may have taken that to far :-) )

And to the comment above "apparently google makes a lot of money on internet adverising..."
Try its there only sourse of income. And if internet advertising wasnt effective, why is it everywhere you look? Its massivly effective. Thats why MS bought it... duh

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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