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article imageGoogle Buys DoubleClick for $3.1 Billion

By malan     Apr 13, 2007 in Business
Google has reached an agreement that will allow them to acquire DoubleClick for $3.1 billion in cash. The deal positions Google to be one of the strongest companies in the world of online advertising, while kicking the competition to the curb.
The bidding war over DoubleClick between Microsoft and Google is finally over and Google has announced they are the winner. The number is huge, double what Google paid for YouTube last year, a purchase that seemed huge at the time.
The acquisition allows Google access to DoubleClick's advertisement software and its relationships with Web publishers, advertisers and advertising agencies.
Recently, DoubleClick announced a stock exchange type of service for online ads that could be extremely helpful to Google's bid to dominate the online advertising market. The service is a Nasdaq-like exchange for online ads that brings Web publishers and advertising buyers together on a Web site where they can participate in auctions for ad space. DoubleClick had announced earlier that they thought the new service would revolutionize the industry and be their biggest money maker.
“Google really wants to get into the display advertising business in a big way, and they don’t have the relationships they need to make it happen,” said Dave Morgan, the chairman of Tacoda, an online advertising network. “But DoubleClick does. It gives them immediate access to those relationships.”
Although the price may seem high it should definitely be understood that if Microsoft had been successful at acquiring DoubleClick they could have potentially become a major competitor to Google in the online ad market, but the loss of this deal to Google will surely stand as another huge setback in their hopes of catching up with the search engine company that just keeps exploding.
“Keeping Microsoft away from DoubleClick is worth billions to Google,” an analyst with RBC Capital Markets, Jordan Rohan, said.
You can imagine that right now, there are some heavy heads over at Microsoft and some major celebrations going on at Google.
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