We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Microsoft buys web ad firm for $6bn

Deal follows Google' Doubleclick acquisition

Microsoft plans to acquire aQuantive, a digital marketing services agency, for around $6bn in order to grow its internet advertising business, it was announced today.

Microsoft said aQuantive's 2,600 employees will be incorporated into its online services business, dedicated to growing advertising on the company's MSN portal, its Windows Live online services, the Xbox Live gaming platform and Office Live services.

The planned acquisition comes just a month after Google paid $3.1bn for DoubleClick, a network of advertisers and web publishers, to boost its capabilities in rich media advertising such as banner, graphical and video ads.

While Microsoft lost out in the DoubleClick bidding war, aQuantive represents a significant acquisition for Microsoft, albeit a smaller one than the company's rumoured interest in a buyout of Yahoo.

aQuantive will bring new digital advertising software and services for Microsoft to support other services such as on-demand video and IP (Internet Protocol) television. aQuantive's Avenue A Razorfish service puts together packages of online advertising for its clients. The company has also runs Atlas, a business that offers software and services for digital ad placement. aQuantive has another service, DRIVEpm, that helps advertisers and publishers manage campaigns and ad inventory.

Subject to shareholder and regulatory approval, the deal, which values aQuantive at $66.50 per share, is expected to close in the first half of Microsoft's fiscal 2008. Microsoft is offering a sizeable premium on aQuantive's stock, which closed Thursday at $35.87.


IDG UK Sites

Apple promises developers better stability, performance for Swift

IDG UK Sites

5 things we hate about MWC: What it's like to be a journalist at a technology trade show

IDG UK Sites

Interview: Lauren Currie aims to help design students bridge skills gap

IDG UK Sites

12in Retina MacBook Air release date rumours: new MacBook Air to have fingerprint ID, could launch...