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Microsoft to Aquire aQuantive for $6 Billion

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  • User profile image
    eagle

    Microsoft Online Advertising

    Microsoft to Acquire aQuantive, Inc.

    Microsoft just announced they are acquiring aQuantive, Inc., for $66.50 per share in an all-cash transaction valued at approximately $6 billion.

    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. .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. - Steve Ballmer

    This acquisition into digital media, aQuantive is the parent of Atlas, DRIVEpm and Avenue A | Razorfish doesn't say much about Steve's confidence in the Online Services Group.

    I spoke to Steve Berkowitz, the VP of Microsoft's Online Services Group several weeks ago in New York about placing ads from Microsoft on community blogs, he said we want to do it right and we're not ready yet.

  • User profile image
    eagle

    $66.50 a share for aQuantive when they were at $35.87 just yesterday! $6 billion is twice the price Google paid for DoubleClick and is by far the largest acquisition in Microsoft's short history.

  • User profile image
    corona_coder

    Its called: Desperation

  • User profile image
    eagle

    Not if you heald shares of AQNT, but MSFT is a different story.

  • User profile image
    corona_coder

    Is aQuantive as strong a buy as DoubleClick?  No.  I had heard of DoubleClick, never of aQuantive.  Microsoft is trying to play this off as some big coup, when its nothing more than getting into some punching contest with Google.  Remember, its Googles world we are just living in it.

  • User profile image
    eagle

    Their acquiring over 2000 guys in suites who have convinced then that they know what advertising is all about.

  • User profile image
    phreaks

    corona_coder wrote:
    Is aQuantive as strong a buy as DoubleClick?  No.  I had heard of DoubleClick, never of aQuantive.  Microsoft is trying to play this off as some big coup, when its nothing more than getting into some punching contest with Google.  Remember, its Googles world we are just living in it.


    You've never heard of aQuantive?!?

    Ya know Razorfish, Avenue A, i-Cube, etc....

    I think it's a pretty big deal. These are pretty much design centric agencies.

    Well i-Cube used to be process centric until it merged with razorfish back in 2000 (Guessing at time, seems about right though).

    I find this interesting especially with the release of silverlight.

    MS is expanding to verticals I didn't think they ever would.
    We'll have to wait and see how it all pans out, but I think it's pretty interesting.

    http://www.avenuea-razorfish.com/whatWeDo.htm

    http://en.wikipedia.org/wiki/Avenue_A/Razorfish

  • User profile image
    Lloyd_Humph

    I could do some damage with $6bn... maaan I could do damage.

    If Blackberrys are addictive cellphones, Channel9 is the ultimate addictive website.
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  • User profile image
    TommyCarlier

    I don't know which comedian said it, but I remember someone saying that if he had a billion dollars, he would buy all the pants in the world and burn them.

  • User profile image
    ScanIAm

    corona_coder wrote:
    Is aQuantive as strong a buy as DoubleClick?  No.  I had heard of DoubleClick, never of aQuantive.  Microsoft is trying to play this off as some big coup, when its nothing more than getting into some punching contest with Google.  Remember, its Googles world we are just living in it.


    Honestly, companies don't really care WHO serves up their ad content as long as it gets served up.  Most people have never heard of DoubleClick either.  At best it's one of the many 'cookies' that get removed when they run virus/adware software.

    It is a bit silly on MSFT's part to continue to play tit-for-tat with Google.  Google has a vast array of productivity products that nobody uses.  MSFT, has a vast array of productivity products that everybody uses.  Google has the best search engine and uses its bestiness to get people to pay for targetted ads.  MSFT has the best productivity software and (maybe) should use its bestivity to its advantage.

    Maybe they could give free versions of their popular product as long as you view targetted ads. 

  • User profile image
    eagle

    Yea, I'm hoping to get a Free car with an electronic billboard on-board..

  • User profile image
    ScanIAm

    eagle wrote:
    Yea, I'm hoping to get a Free car with an electronic billboard on-board..


    I'm sure you've seen businesses do something similar.  In my part of the country, Radio Stations, 10-minute Oil Change garages, and Banks will give you money or other trinkets to put a bumper sticker on your car.

  • User profile image
    phreaks

    ScanIAm wrote:
    
    corona_coder wrote:
    Is aQuantive as strong a buy as DoubleClick?  No.  I had heard of DoubleClick, never of aQuantive.  Microsoft is trying to play this off as some big coup, when its nothing more than getting into some punching contest with Google.  Remember, its Googles world we are just living in it.


    Honestly, companies don't really care WHO serves up their ad content as long as it gets served up.  Most people have never heard of DoubleClick either.  At best it's one of the many 'cookies' that get removed when they run virus/adware software.

    It is a bit silly on MSFT's part to continue to play tit-for-tat with Google.  Google has a vast array of productivity products that nobody uses.  MSFT, has a vast array of productivity products that everybody uses.  Google has the best search engine and uses its bestiness to get people to pay for targetted ads.  MSFT has the best productivity software and (maybe) should use its bestivity to its advantage.

    Maybe they could give free versions of their popular product as long as you view targetted ads. 



    I don't see why aQuantive isn't as 'strong' of a buy as double-click.

    aQuantive has a pretty good reputation in the design world, no?
    Whereas Double-click seems to have a poorer reputation.

    Wikipedia wrote:

    It is the largest single buyer of web media ($418 mm) and paid search ($130 mm). Ad Age named Avenue A | Razorfish 2005 media agency of the year, while Forrester Research ranked it as a top-tier web design agency. Its clients include CondéNet, Proctor & Gamble, Apple, adidas, JPMorgan Chase, and Wyeth Pharmaceuticals. Its work for Mercedes-AMG won the 2006 Webby Award for Best Automotive Site, and its recent redesign of NYTimes.com has garnered critical praise from the industry and blogosphere alike.

  • User profile image
    anand.t

    wowowo thats a lot of money.

    btw did not corono-coder bit good bye sometime back?? was his account hacked by someone else

  • User profile image
    ScanIAm

    anand.t wrote:
    wowowo thats a lot of money.

    btw did not corono-coder bit good bye sometime back?? was his account hacked by someone else


    yeah, that's what happened....

    Back to topic:  MSFT only has to tell how much cash they have a few times a year, but if I remember correctly, $6 billion isn't much overall.  Don't get me wrong:  If I saw $6 billion sitting on the ground, I'd shove as much of it as I could in my pockets and run like hell, but for a company the size of MSFT, it actually IS pocket change Smiley

  • User profile image
    eagle

    MSFT lost ground today, so the shareholders are not pleased.

  • User profile image
    eagle

    Mini-Microsoft Ack! As in Ack!quisition...

    Six billion dollars.

    $6,000,000,000USD.

    Holy crap.

    In my opinion, this is a huge demonstration of fear, desperation, and dim-dog market tail-light chasing greed on our part. Every acquisition represents our failure to use our 70,000+ employee base to solve a solution or create a new market. Rather than buying back stock or pushing out a dividend, shareholder money got mis-invested in a hugely overpriced acquisition. And you're a shareholder why?

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