Latest Blogs

from the Emerging Business Team

Don Dodge on The Next Big Thing

Microsoft acquires aQuantive

Microsoft today announced the acquisition of aQuantive, an online advertising and marketing company, for approximately $6 Billion in cash. Founded in 1997, aQuantive, Inc. (NASDAQ: AQNT) is primarily known for its three brand names; Atlas and DRIVEpm for advertisers and publishers, and Avenue A / Razorfish, one of the largest online ad agencies.

  • 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.

The Microsoft press release included this quote from Steve Ballmer. “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.”

MarketWatch reports "In 2006, the company's revenue jumped more than 43% to $442.2 million, following a 95% gain the year before that. For the current year, aQuantive has forecast an increase in sales of as much as 39% to $615 million. The firm is already profitable."

TechCrunch reports;

aQuantive is a public company (AQNT) and had a market cap of just $2.8 billion as of yesterday. The acquisition price of $6 billion is a roughly 2x premium on yesterday’s closing price, which is a reflection of the fact that this were competing bidders (see notes below). The acquisition comes after recent big acquisitions by Google and Yahoo in this space. Google bought Doubleclick for $3.1 billion in April. Later that same month, Yahoo acquired competitor RightMedia for $680 million. Just yesterday, WPP Group acquired yet another company in this space, 24/7 Real Media, for $649 million.

It is important to note that aQuantive is located in Seattle close to Microsoft's MSN and Live Services groups. This will make integration and coordination much easier. aQuantive has 2,600 employees.

Filed under:
Published Friday, May 18, 2007 9:40 AM by Don Dodge

Comment Notification

If you would like to receive an email when updates are made to this post, please register here

Subscribe to this post's comments using RSS

Comments

 

Beti Cung said:

It's official! This morning Microsoft announced the completion of the $6 billion aQuantive deal announced

November 11, 2007 1:05 AM

Leave a Comment

(required) 
(optional)
(required) 
Submit

About Don Dodge

I have been in the software business for more than 20 years. I started my software career with Digital Equipment Corp, aka DEC, in the database group. I worked with 5 software start-ups over the next 12 years. Forte Software was the first multiplatform object oriented development environment. AltaVista was the first search engine on the web. Napster was the first P2P file sharing network. Bowstreet was the first web services development environment. Groove Networks was the first secure P2P collaboration platform. Now I am at Microsoft...the biggest start-up in the world... working with VC's and start-ups in the greater Boston area. The goal is to help VC's and start-ups be successful with Microsoft, and together, provide great products for our customers.
Don Dodge
Information Worker Productivity
I have been in the software business for more than 20 years. I started my software career with Digital Equipment Corp, aka DEC, in the database group. I worked with 5 software start-ups over the next 12 years. Forte Software was the first multiplatform object oriented development environment. AltaVista was the first sear...

Recent Posts

Syndication

  • Subscribe in NewsGator Online
  • Add to Technorati Favorites