Who would have thought that Google would one day buy the largest acquisition in software for creating and measuring internet and advertising campaigns. The purchase of Double Click Inc for $3.1B is a windfall for Hellman and Friedman who bought DoubleClick for $US 1.1B in 2005.
This recent acquisition propels Google further ahead over their market reach in to the $28.8B US online and advertising market. Companies like Sports Illustrated or MTV Networks use DoubleClick’s dart program to place ads on their website and monitor how many customers they reach.
The amount is really over the top and a little mind blowing.
There was very competitive bidding on this acquisition but even with Microsoft’s deep pockets - they pulled back and had their limits. The implications of this decision by Microsoft or Yahoo to ensure Double Click did not go to Google will have some major consequences particularly to Yahoo’s market position.
Google’s interest in DoubleClick may have been largely to prevent Microsoft from acquiring it. Though DoubleClick would give Google a considerably larger presence in the display advertising space and new advertiser relationships, Google is already testing a display advertising network. The search giant could, arguably, leverage its existing advertiser base to get its own network off the ground. However, Google doesn’t want Microsoft gaining traction in the space and undoubtedly wants to protect deals such as its $900 million agreement with News Corp., which gives it the right to serve search ads over three years to the audience on MySpace and several other Fox Interactive properties.
This major acquisition which will close by the end of the year has Google paying cash for it. This deal now eclipses Google’s puchase of YouTube for $1.65B and was fifty percent more than what Hellman and Friedman had wanted.
What will Google have in store next — as they ramp to capture more of the lucrative $28.8B online ad market? Market watchers should watch Google Rival SoftWave Media Exchange Inc a fast growth company that has also recently started to test TV Ads. What is clear they will go over the top to win. This is one of many future acquisition plays for Google to continue to alter the buyer - seller relationships in the advertising market. For market watchers on Google - watch their traction now in the radio market!
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation
: Financing, Innovation