Early this week Microsoft announced it will buy online marketing company aQuantive
– the holding parent of interactive agency Avenue A/Razorfish, display
and paid search ad mangement platform Atlas and inventory management
system DrivePM. The $6 billion deal cash deal represents an 85%
premium to aQuantive’s closing price.
This allows Microsoft to compete with Google + DoubleClick in offering ad serving and access relationships with advertisers and publishers. The price Microsoft has paid reflects their confidence that Online Advertising has reached a tipping point and can now expect huge growth as advertisers shift an increasing portion of their brand advertising budgets online. WPP is working toward a similar goal with its recent announcement to acquire 24/7 Real Media.
Jonathan
