Microsoft inks deal for aQuantive buy

The price tag represents an 85 per cent premium on aQuantive’s closing stock price, the day before the announcement.

AQuantive consists of Atlas, an ad-serving platform; Drivepm, an advertising network that matches clients to publishers; and content creator Avenue A|Razorfish. “Joining the capabilities of these groups is an important step toward our goal of becoming an industry leading, internet-wide advertising platform,” said Kevin Johnson, president, platforms and services division, Microsoft.

The all-cash buyout follows major acquisitions by Google, Yahoo and WPP, all of which fended off reported bids from Microsoft. Google acquired DoubleClick for $3.1 billion, Yahoo purchased remaining shares of Right Media for $680 million and, lastly, WPP acquired 24/7 Real Media for $649 million.

When asked about the sum paid for aQuantive, particularly in comparison to DoubleClick, Erik Johnson, GM of Microsoft Digital Advertising Solutions, Greater China, said: “aQuantive is a much bigger company in terms of services and revenue. What we were missing was an ad platform and the tools to offer this functionality.”

The move has been met with incredulity in the US.

“Microsoft has followed Google’s lead for a ridiculous premium on a second-tier product. It got an ad agency, Avenue A, that falls far from its core competencies. The acquisition should help Atlas and Drivepm. I don’t know if it’ll help Avenue A, but it probably doesn’t hurt them,” said a New York City-based source.