Microsoft buys online ad firm for $6 billion

MUMBAI: Microsoft has announced its largest acquisition ever, countering multiple bids, by paying a premium price of $6 billion to buy Seattle based online advertising firm aQuantive.

The Redmond company, which made its fortune building software, believes that in an estimated $40 million global digital advertising market, this move would help it rise to the challenges posed by arch-competitor Google Inc.

Internet search provider Google outbid Microsoft last month to snap up online advertising firm DoubleClick Inc. for $3.1 billion. Soon after, Yahoo Inc., another global competitor, gobbled up Right Media, for $680 million.

Shares of aQuantive rocketed 77.84 per cent, a gain of $27.92, to $63.79 after the deal was disclosed yesterday. Microsoft‘s shares, meanwhile, retreated 0.48 per cent, or 15 cents, to $30.83.

Microsoft has been expanding into advertising and other Internet businesses as its core software business matures.


Its alliance with aQuantive, which owns a cluster of computer servers, an ad network, and an interactive advertising agency, will catalyse its efforts to use online advertising market that is projected to reach $40 billion in 2008 and to grow at 20 per cent a year through the rest of the decade.

aQuantive‘s technology will enable Microsoft to drive advertising to the sites of third parties, such as news, sports, entertainment, online game, and other content companies. Many of those companies now contract with Google to place advertisements on their sites.

The deal also could give Microsoft a leg up in providing ads for game consoles, Internet television and cellular phones. Last month, Microsoft signaled its interest in that market by buying ScreenTonic, a mobile phone advertising firm in Europe.


Latest Reads
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components
DJI Makes Your Smartphone Smarter with the New Osmo Mobile

DJI, the world leader in creative camera technology, Thursday launched the Osmo Mobile, an extension for smartphones that turns them into intelligent, precision camera systems.

Technology Hardware Components
Prime Focus Tech gets funding from PE firm Ambit Pragma

MUMBAI: Prime Focus Technologies (PFT) – the technology offshoot of media services company Prime Focus - informed the Bombay stock exchange today that it had received its first round of funding from growth capital private equity fund Ambit Pragma.

Technology Software Applications
Three new products developed by C-DOT launched on its Foundation Day

Communications Minister Manoj Sinha today expressed the hope that 100,000 Gram Panchayats (GPs) will be connected through Optical Fibre Cable (OFC) by March next to set up a network infrastructure to serve the rural masses.

Technology Hardware Distribution
Genpact and BITS partner to build talent in the field of analytics

Genpact (NYSE: G), a global leader in digitally-powered business process management and services, today announced a partnership with premier technical education university Birla Institute of Technology and Science (BITS) for offering training programs in the field of analytics.

Technology Software Middleware

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories