FTC Probe Google Acquisition
Published May 30th, 2007
The Federal Trade Commission has asked Google for more details about its proposed $3.1 billion purchase of online advertising company DoubleClick as part of an investigation into whether the deal raises antitrust concerns, a Google executive said yesterday.
The executive said the company learned Friday that an initial 30-day waiting period had expired without the FTC or the Justice Department deciding whether the acquisition could proceed. Instead, the company was told the FTC would take charge of the investigation.
In a filing with the Securities and Exchange Commission yesterday, Google said it had been asked by the FTC for “additional information and documentary materials” relating to the acquisition and was cooperating with the request. If the purchase passes official muster, it would accelerate Google’s effort to extend its highly lucrative online advertising business beyond the text promotions that appear alongside Web-search results to include larger display and video ads. DoubleClick specializes in a technology that places banner and video ads on Web sites and helps marketers track their effectiveness in attracting potential customers.
“We are confident that upon further review the FTC will conclude this acquisition poses no risk to competition and should be approved,” Donald S. Harrison, Google’s senior corporate counsel, said in a written statement.
Google confirmed that the request was made after conflicting media reports about the FTC investigation.
An FTC spokesman confirmed the investigation yesterday but would not comment on its specifics.
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