Microsoft Acquires aQuantive for Six BILLLLLION Dollars
Ian Lurie May 18 2007
The desktop software juggernaut purchased interactive advertising company aQuantive today for $6,000,000,000. No, I did not add too many zeros.
aQuantive includes three companies: Atlas provides a set of tools for managing campaigns, page optimization and the like; DRIVEpm is an advertising network; and Avenue A/Razorfish is an interactive agency.
Clearly, the folks in Redmond are playing catch-up with Google. Google, remember, shelled out a paltry $3 billion for the ad network DoubleClick.
Here’s why Microsoft’s move is stupid:
- It’s too late. Microsoft is far, far behind in the online advertising world. By the time this acquisition is complete, they’ll be further behind. They should have focused inward, on building their own tools, instead. They they might have had a chance.
- Microsoft won’t be able to mesh, culturally, with aQuantive. This is Microsoft’s biggest deal ever. It will also be their hardest to process, thereby putting Microsoft even further behind.
- It’s too late.
- Microsoft could become the second player in the ad market without acquisition. Why exactly spent $6 billion?
- It’s tooooooo laaaaaatttteeee.
- Part of their $6 billion went to purchase Avenue A/Razorfish – an agency. An amazing agency, but they have nothing to offer Microsoft, or vice-versa.
- I won’t say it again.
- They paid far too much.
What should advertisers and marketers do? I’d say sit tight – wait to see what Google does with DoubleClick. It’ll be some time before this deal impacts Atlas or DRIVEpm. Microsoft says they’ll leave Avenue A/Razorfish alone, and I believe them.
But Microsoft doesn’t have a good history when it comes to acquiring interactive properties: When Microsoft acquired HotMail they forged it into, um, HotMail.
Google could do with DoubleClick what they did with Urchin, forging it into a free, easy-to-use tool.
If that happens, and aQuantive customers jump ship, Microsoft will be left holding a $6 billion bag full of coal…
Ian Lurie is CEO and founder of Portent Inc. He's recorded training for Lynda.com, writes regularly for the Portent Blog and has been published on AllThingsD, Forbes.com and TechCrunch. Ian speaks at conferences around the world, including SearchLove, MozCon, SIC and ad:Tech. Follow him on Twitter at portentint. He also just published a book about strategy for services businesses: One Trick Ponies Get Shot, available on Kindle. Read More