Microsoft smacks down $6 billion for online advertising firm

Damn, Microsoft just smacked down $6 billion for online advertising firm aQuantive Inc. says MSNBC. Paying a hefty premium, too. More on Google News for aQuantive. This is a firm that builds ads and marketing for companies. We know there’s a lot more money that’ll come into this market over the next few years. I wonder what else is up Microsoft’s sleeve now? They need to buy some audiences, the best audiences aren’t under Microsoft’s brands anymore. This helps keep Microsoft in the relationship game with advertisers, but not sure it really shows a good strategy yet. It sure would be fun to be a fly in the wall inside Ballmer’s office right now. What do you think?

61 thoughts on “Microsoft smacks down $6 billion for online advertising firm

  1. Hello? Hello? Can anyone hear me? This is Senior Citizen Mr. Invisible, the lowest level of corporate consideration in history.
    Apple has great ads w/chubby “suit”
    representing MS OS and a young man in jeans and polo shirt, the apple OS. One shows MS guy arriving late enormously fat with garbage programs to the point he can hardly walk..characteristic of MS and its OS.
    I survived installing XP Sp2 from ordered
    disk after multiple attempts of downloading. They failed miserably and screwed up my computer. It took [3] Gos to install even with ordered disk.
    PCWorld,in a column, said The RTM team consists
    of two people[and one stuffed monkey] Vs the hundreds
    [?] of programers Microsoft has employed.
    “In other words, a couple of enterprising folks
    have built a better, faster-evolving solution than the world’s largest software company has.”
    Perhaps MS deserves to overpay and continue
    to do a half-assed and pompous job.
    The true pathos comes from the tail wagging the
    dog [tail=advertising] with product/service an
    after thought. What ever happened to “Profit is the
    by product of service!”

  2. Hello? Hello? Can anyone hear me? This is Senior Citizen Mr. Invisible, the lowest level of corporate consideration in history.
    Apple has great ads w/chubby “suit”
    representing MS OS and a young man in jeans and polo shirt, the apple OS. One shows MS guy arriving late enormously fat with garbage programs to the point he can hardly walk..characteristic of MS and its OS.
    I survived installing XP Sp2 from ordered
    disk after multiple attempts of downloading. They failed miserably and screwed up my computer. It took [3] Gos to install even with ordered disk.
    PCWorld,in a column, said The RTM team consists
    of two people[and one stuffed monkey] Vs the hundreds
    [?] of programers Microsoft has employed.
    “In other words, a couple of enterprising folks
    have built a better, faster-evolving solution than the world’s largest software company has.”
    Perhaps MS deserves to overpay and continue
    to do a half-assed and pompous job.
    The true pathos comes from the tail wagging the
    dog [tail=advertising] with product/service an
    after thought. What ever happened to “Profit is the
    by product of service!”

  3. I love it.

    It’s a great move.

    Anything that pre-occupies MSFT, drains its cash horde, takes it into territories they have no competence in and gives them a false sense of security is great news for the rest of us!

    Go Ballmer.

  4. I love it.

    It’s a great move.

    Anything that pre-occupies MSFT, drains its cash horde, takes it into territories they have no competence in and gives them a false sense of security is great news for the rest of us!

    Go Ballmer.

  5. MSFT is willing to pay this much to acquire a web advertising company. I am wondering how much did DoubleClick say no to?

  6. MSFT is willing to pay this much to acquire a web advertising company. I am wondering how much did DoubleClick say no to?

  7. First — I stand corrected. Google did pay cash for DoubleClick (per Google’s own website). Unclear what DoubleClick’s earnings were, because at the time they were a privately held company. In 2004Q3, when DoubleClick was public, its quarterly earnings were $15.4 million.

    But, anyway, my position here was never intended to be that Google’s acquisitions were financially smart.

    My point was, and is, that this aQuantive acquisition is not the Microsoft I knew. And, more importantly (to me), it is not the Bill Gates I read about and, let’s be honest, idolized. I can only imagine what the long-time coders toiling away within Microsoft Corp. think when they see money being spent on a scale like this. Six billion dollars represents a lot of people’s raises and bonuses not happening.

    I conclude from the aQuantive purchase the following things:

    1) Bill Gates really has let go of the company.

    2) Google really has gotten under Microsoft’s skin.

    3) Microsoft’s stock can no longer be considered “bluechip.” With Office, Vista, and so on, one might reasonably have believed that Microsoft was entering its large and “steady-as-she-goes” state…nothing spectacular, but predictable, solid earnings growth over the foreseeable short term. With the aQuantive acquisition, Microsoft has signalled that it is not willing to take, or settle for, that road. And, as a corollary, MSFT stockholders must reassess. The company’s leadership is gambling. Is the gamble is on-target or not?

  8. First — I stand corrected. Google did pay cash for DoubleClick (per Google’s own website). Unclear what DoubleClick’s earnings were, because at the time they were a privately held company. In 2004Q3, when DoubleClick was public, its quarterly earnings were $15.4 million.

    But, anyway, my position here was never intended to be that Google’s acquisitions were financially smart.

    My point was, and is, that this aQuantive acquisition is not the Microsoft I knew. And, more importantly (to me), it is not the Bill Gates I read about and, let’s be honest, idolized. I can only imagine what the long-time coders toiling away within Microsoft Corp. think when they see money being spent on a scale like this. Six billion dollars represents a lot of people’s raises and bonuses not happening.

    I conclude from the aQuantive purchase the following things:

    1) Bill Gates really has let go of the company.

    2) Google really has gotten under Microsoft’s skin.

    3) Microsoft’s stock can no longer be considered “bluechip.” With Office, Vista, and so on, one might reasonably have believed that Microsoft was entering its large and “steady-as-she-goes” state…nothing spectacular, but predictable, solid earnings growth over the foreseeable short term. With the aQuantive acquisition, Microsoft has signalled that it is not willing to take, or settle for, that road. And, as a corollary, MSFT stockholders must reassess. The company’s leadership is gambling. Is the gamble is on-target or not?

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