Microsoft buys ad firm for $6bn

**gkd_uk** · 05-19-2007, 04:58 PM

Microsoft is paying $6bn (Â£3bn) to buy digital marketing firm Aquantive in its biggest ever acquisition.
The all-cash takeover will allow Microsoft to expand into the highly lucrative internet advertising market, that Google and Yahoo have targeted.

Aquantive advises agencies and website publishers on putting adverts online, connecting buyers and sellers.

The $66.50 per share offer is 85% higher than Aquantive's Thursday closing price of $35.87.

'New level'

"This deal takes our advertising business to a new level," said Kevin Johnson, head of Microsoft's platforms and services division.

"We are committed to earn a bigger slice of the Â£40bn pie that's growing."

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**OldWelshGuy** · 05-19-2007, 06:12 PM

They are trying to pull the rug from under Google. By Buying the firm, watch them offer discounts on the MSN network Contextual and CPM networkx . Cracking move IMO.

**gkd_uk** · 05-19-2007, 07:33 PM

Yahoo is the next purchase

Microsoft will be putting Google under huge pressure

**OldWelshGuy** · 05-19-2007, 09:47 PM

If I were microsoft, I would NOT go after Yahoo, I would go after Ask!

Why? Well the best algorithm by far is the old teoma algo that Ask bought. It clusters and filters the hierachy better than ANYTHING Google have. If Microsoft were to get hold of that and apply it to their index, then they could get some serious relevance and quality SERP's.

Sadly, I think they will forgo quality and chase Yahoo! for the sheer quantity.