Santiago Iñiguez, Dean and Professor of Strategy

Someone kindly passed me this news that I believe will be interesting for you, particularly in light of the post of Ricardo Perez of 18th April, which refers to the similar case of Google buying DoubleClick: "More on Google and DoubleClick"

Press Release from the Microsoft website "...Plans to Build Internet-Wide Advertising Platform for Advertisers, Publishers and Ad Agencies."

REDMOND, Wash. — May 18, 2007 — Microsoft Corp. today announced it will acquire aQuantive, Inc., for $66.50 per share in an all-cash transaction valued at approximately $6 billion. This deal expands upon the Company’s previously outlined vision to provide the advertising industry with a world class, Internet-wide advertising platform, as well as a set of tools and services that help its constituents generate the highest possible return on their advertising investments.

One of the leading bloggers in the world (66th), Om Malik wrote today his commentaries on this in "Of Mad Money & Ad Networks":

In 2006, according to Internet Advertising Bureau, the advertising revenues reached an all time high of $16.8 billion. In comparison, $11 billion has been spent by various players in buying out ad networks. Don’t be surprised if this number rises even higher. Welcome to the mad-money phase of the eyeball boom!

The latest jaw-dropping move comes from Microsoft that has bought aQuantive, another ad network, based in Microsoft’s backyard, Seattle, for $6 billion and change. The move is a reaction to losing DoubleClick ($3.1 billion) to Google. Earlier this week, WPP bought 24/7 Real Media for $650 million.

Posted on 18 May 2007 in Internet

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