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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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Fighting Google?
By Newspapercrane on 5/19/2007 10:58:03 AM , Rating: 2
Could this be a move by Microsoft to counter all of Google's advertisement investments, or even break into the market? Google apparently makes A LOT on advertisements, and maybe Microsoft wants a piece.

RE: Fighting Google?
By phatboye on 5/19/2007 12:00:14 PM , Rating: 5
Duh :O

RE: Fighting Google?
By Armorize on 5/19/07, Rating: -1
RE: Fighting Google?
By FITCamaro on 5/20/2007 9:13:45 AM , Rating: 2
Funny considering

1) Microsoft's internet browsers don't have ads.
2) IE7 does just as good a job at blocking ads as Firefox.

I see Microsoft bashing has gotten to the point where people blame Microsoft for web sites putting ads on their pages.

And I say this from a Firefox 2.0 browser.

RE: Fighting Google?
By Vinnybcfc on 5/20/2007 2:26:53 PM , Rating: 3
Drugs are bad mmmkay?

Seriously do you really think you make any sense by spelling MS as M$ it is childish at best, just like the idiots who spell Sony as $0ny, yeah you look really leet.

And why would Microsoft want to put ads into IE8 just to drive people away to Opera or Firefox?

A Google OS would be based on Linux and wouldn't be able to run any of your Win programs anyway so you wouldn't use it.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

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