Microsoft acquires aQuantive for US$6 bil
MICROSOFT has agreed to pay $US6 billion ($7.26 billion) in cash to acquire aQuantive, a leading agency for internet ads which also has powerful technology that serves display and banner ads to other web sites. The eye-popping premium of 85 per cent Microsoft is paying for aQuantive reflects a heated race for the few remaining online advertising businesses, as media and technology companies jockey for position in the internet advertising market.
The deal caps a month of furious activity in the sector which began in mid-April with Google's $US3.1 billion purchase of DoubleClick, a company that provides technology used by web site publishers to deliver advertisements to viewers. Google is already the leading provider of keyword search advertising, which suggests "sponsored" links along with search results. Companies like DoubleClick and aQuantive help provide the delivery of "display" ads on web sites such as banners and boxes, which lead users to advertiser's web sites.
