Microsoft buys ad firm for $6bn
Published May 18th, 2007
Microsoft is paying $6bn (£3bn) to buy digital marketing firm Aquantive in its biggest ever acquisition.
The all-cash takeover will allow Microsoft to expand into the highly lucrative internet advertising market, that Google and Yahoo have targeted.
Aquantive advises agencies and website publishers on putting adverts online, connecting buyers and sellers.
The $66.50 per share offer is 85% higher than Seattle-based Aquantive’s Thursday closing share price.
Shares in Aquantive shot up 77.5% in early Friday trading on the technology-dominated Nasdaq index to $63.68.
The closing price of the shares on Thursday had been $35.87.
“This deal takes our advertising business to a new level,” said Kevin Johnson, head of Microsoft’s platforms and services division.
“We are committed to earn a bigger slice of the £40bn pie that’s growing.”
The deal is expected to be completed in the first half of 2008, subject to regulation.
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