Microsoft has announced that it will acquire aQuantive, Inc., which owns Atlas and Avenue A/Razorfish, for around $6 billion in cash. This is the biggest acquisition in the Microsoft’s history and it is an effort to expand its presence in the Internet advertising market.
This deal follows the Google’s acquisition of DoubleClick for $3.1 billion and Yahoo’s buyout of Right Media Inc. for $680 million. The deal is expected to be completed in the first half of Microsoft’s fiscal year 2008.
From Microsoft’s press release,
“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 Steve Ballmer, chief executive officer of Microsoft. “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.”
The aQuantive acquisition enables Microsoft to strengthen relationships with advertisers, agencies and publishers by enhancing the Company’s world-class advertising platforms and services beyond its current capabilities to serve MSN. The acquisition also provides Microsoft increased depth in building and supporting next generation advertising solutions and environments such as cross media planning, video-on-demand and IPTV. Combining aQuantive’s technologies and services with Microsoft’s portfolio will provide value for the industry’s key constituencies as follows:
- Advertisers and ad agencies will benefit from a world-class media planning, buying and campaign management solution to drive maximum ROI and optimize their reach to audiences across the increasingly fragmented, interactive media landscape.
- Media owners/publishers will gain access to best-in-class inventory optimization and monetization solutions across a full suite of rich media, video and targeting capabilities.
- The broader advertising ecosystem will benefit from the leading interactive advertising agency, Avenue A | Razorfish, continuing to serve its impressive client roster, while also embedding the voice of the marketer into Microsoft’s next generation advertising solutions and services.
Founded in 1997, aQuantive, Inc. (NASDAQ: AQNT) is the parent company of one of the industry’s most successful families of digital marketing service and technology companies, encompassing three primary brands.
- Atlas provides a set of advanced tools for both advertisers and publishers. The Atlas Media Console is an industry-leading toolset providing agencies and advertisers with capabilities to maximize ROI. The Atlas Publisher platform enables publishers to maximize monetization opportunities for their content.
- DRIVEpm provides services to publishers and advertisers that match advertiser campaigns with publisher inventory enabling all parties to maximize ROI.
- Avenue A | Razorfish is one of the largest interactive ad agencies in the world, providing advertisers with industry-leading digital marketing consultation, media planning and buying, and creative services that help advertisers use the online channel to build meaningful, profitable relationships with their customers.
“Combining the talented people and deep technology and service expertise of these two companies will help make buying and selling media simpler, smarter and more cost effective for advertisers, agencies and publishers alike,” said Kevin Johnson, president, Platforms and Services Division at Microsoft. “Joining the capabilities of these groups is an important step toward our goal of becoming an industry leading, Internet-wide advertising platform.”
“aQuantive’s mission has been to leverage the power of digital marketing services and technologies to drive measurable results for our clients,” said Brian P. McAndrews, chief executive officer of aQuantive. “Microsoft has set a leading example in prioritizing industry partnership, transparency, measurement and quality, and we look forward to combining forces and bringing the value of our combined assets to bear for the benefit of advertisers, ad agencies and publishers.”
Aravindhan
This entry was posted on Sunday, May 20th, 2007 at 6:18 pm and is filed under Search Engine Marketing, Microsoft. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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