BUSINESS
Microsoft to 'acquire DoubleClick'?
29-03-2007
by The Register
Microsoft wants to buy New York-based online advertising firm DoubleClick, according to the Wall Street Journal.
DoubleClick, which is majority-owned by private equity firm Hellman and Friedman, is said to be exploring options and working closely with Morgan Stanley to secure a possible sale with Microsoft.
A USD2 billion price tag has been placed on DoubleClick by the private equity firm. DoubleClick, which was founded in 1996 and went private in 2005, has seen revenue of USD150 million in the last year.
But what's in it for Microsoft? Surely the company could find a cheaper way to build or buy some ad-serving software. And paying USD2 billion to replace Atlas GMT, Microsoft's current ad-serving software of choice, for an inhouse service looks somewhat eccentric.
Which means that Microsoft would be paying a big premium to extend hooks into ad agencies and publishers, giving it some more heft in its struggle against the Google behemoth.
The Register and its contents are copyright 2006 Situation Publishing. Reprinted with permission.

