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| Version 2 | Version 3 |
|---|---|
| Microsoft buys ad firm for $6bn | Microsoft buys ad firm for $6bn |
| (about 3 hours later) | |
| Microsoft is paying $6bn (£3bn) to buy digital marketing firm Aquantive in its biggest ever acquisition. | 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. | 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. | Aquantive advises agencies and website publishers on putting adverts online, connecting buyers and sellers. |
| The $66.50 per share offer is 85% higher than Aquantive's Thursday closing price of $35.87. | The $66.50 per share offer is 85% higher than Aquantive's Thursday closing price of $35.87. |
| 'New level' | 'New level' |
| "This deal takes our advertising business to a new level," said Kevin Johnson, head of Microsoft's platforms and services division. | "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." | "We are committed to earn a bigger slice of the £40bn pie that's growing." |
| There had to have been some desperation for Microsoft to pay the price that it did Toan Tran, Morningstar analyst See Aquantive's share price See Microsoft's share price | There had to have been some desperation for Microsoft to pay the price that it did Toan Tran, Morningstar analyst See Aquantive's share price See Microsoft's share price |
| Microsoft is the latest technology firm to pounce on the shrinking independent online advertising sector. | Microsoft is the latest technology firm to pounce on the shrinking independent online advertising sector. |
| Last month, search engine giant Google agreed to buy DoubleClick for $3.1bn, while Yahoo snatched the 80% of Right Media Exchange it did not already own for $680m. | Last month, search engine giant Google agreed to buy DoubleClick for $3.1bn, while Yahoo snatched the 80% of Right Media Exchange it did not already own for $680m. |
| Price justified? | Price justified? |
| Microsoft justified the expensive price tag - which represents 2% of its market value - by arguing the complementary technology of Aquantive was worth it. | Microsoft justified the expensive price tag - which represents 2% of its market value - by arguing the complementary technology of Aquantive was worth it. |
| But analysts are sceptical. | But analysts are sceptical. |
| "There had to have been some desperation for Microsoft to pay the price that it did," said Morningstar analyst Toan Tran. | "There had to have been some desperation for Microsoft to pay the price that it did," said Morningstar analyst Toan Tran. |
| "Sometimes, I am worried that Microsoft has Google-tunnel vision. It's so worried what Google is doing that it becomes way too reactionary," he added. | "Sometimes, I am worried that Microsoft has Google-tunnel vision. It's so worried what Google is doing that it becomes way too reactionary," he added. |
| Aquantive, which has about 2,600 employees, will continue to operate from Seattle as part of Microsoft's online operations. | Aquantive, which has about 2,600 employees, will continue to operate from Seattle as part of Microsoft's online operations. |
| It will help the software giant broaden the scope of services its MSN consumer internet unit can offer. | It will help the software giant broaden the scope of services its MSN consumer internet unit can offer. |
| The deal is expected to be completed in the first half of 2008, subject to regulation. | The deal is expected to be completed in the first half of 2008, subject to regulation. |
| Shares in Aquantive shot up 78% to $63.79 in Friday trading on the technology-dominated Nasdaq index, while Microsoft shares fell 0.5% to $30.83. |