Microsoft to Pour $6 Billion Into Online Ad Firm aQuantive

In a move to increase its position in online advertising, Microsoft Corp. plans to spend $6 billion to acquire aQuantive Inc. That’s nearly twice the price of what Google paid for DoubleClick – a company Microsoft, among others, also was vying for – earlier this year.

Through this new deal, Microsoft will pay a generous $66.50 per share for the digital marketing company, whose brands include Atlanta, Avenue A | Razorfish and DRIVEpm.

“It seems like they’re paying a big premium for this company, but addressing advertising on the Internet for all parties is a giant challenge,” said Teresa Mastrangelo, principal analyst at BroadbandTrends.com.

“The advertising industry is evolving and growing at an incredible pace, moving increasingly toward online and IP-served platforms, which dramatically increases the importance of software for this industry,” said Microsoft CEO Steve Ballmer in a release announcing the move. “Today’s 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.”

Atlas, one of the aQuantive brands, provides a set of advanced tools for both advertisers and publishers. The Atlas Media Console is a toolset to help agencies and advertisers maximize ROI. The Atlas Publisher platform is targeted at publishers.

The Avenue A | Razorfish business of aQuantive is one of the largest interactive ad agencies in the world.

And aQuantive’s DRIVEpm entity provides services to publishers and advertisers that match advertiser campaigns with publisher inventory enabling all parties to maximize ROI.

aQuantive, which has approximately 2,600 employees, will continue to operate from its Seattle headquarters as part of Microsoft’s Online Services Business following the close of the deal, which is expected to be completed in the first half of Microsoft’s fiscal year 2008. The deal is not expected to have a significant impact on the financial guidance previously issued by Microsoft.





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