Search engine leader Google has announced it will buy top digital marketing services firm DoubleClick for $3.1 billion from private equity firm Hellman & Friedman, which bought DoubleClick for $1.1 billion in 2005. The deal, Google’s largest to date, will likely help boost Google’s presence in the area of Internet display advertising, not that it doesn’t already dominate the market. DoubleClick specializes on placing and serving banners and other display ads on prominent Web sites. Google CEO Eric Schmidt noted that the addition of DoubleClick to Google's business would strengthen Google's position with large brand-name advertisers, who tend to rely more on display ads than the search ads that Google specializes in.
The companies added in the statement that the deal, which should close by the end of the year, will lead to more relevant ads for consumers and a more efficient ad buying and selling process for online publishers and advertisers. Google's deal for DoubleClick is both a blow to Yahoo and Microsoft, which were also interested in buying DoubleClick. DoubleClick also announced earlier this month that it was setting up an auction-based online exchange for buying and selling Internet ads, making it even more attractive to the bidders. When asked about why Google felt the need to pay as much as it will for DoubleClick, Schmidt responded: "When we looked at DoubleClick, we felt after a very detailed financial analysis that we could afford to pay this and that it would be a good deal for us and our shareholders." Google has more than $11 billion in cash on its balance sheet.
Link: Forum Discussion (Thanks AthleticTrainer1981)
News source: CNN
The companies added in the statement that the deal, which should close by the end of the year, will lead to more relevant ads for consumers and a more efficient ad buying and selling process for online publishers and advertisers. Google's deal for DoubleClick is both a blow to Yahoo and Microsoft, which were also interested in buying DoubleClick. DoubleClick also announced earlier this month that it was setting up an auction-based online exchange for buying and selling Internet ads, making it even more attractive to the bidders. When asked about why Google felt the need to pay as much as it will for DoubleClick, Schmidt responded: "When we looked at DoubleClick, we felt after a very detailed financial analysis that we could afford to pay this and that it would be a good deal for us and our shareholders." Google has more than $11 billion in cash on its balance sheet.
Link: Forum Discussion (Thanks AthleticTrainer1981) News source: CNN
But seriously though, they may eventually get to the monopoly percentage.
The antitrust people will say sorry Google you must give some of your search/advertising clients to your competitors.
What do you think Google's clients will say/do?
i dont think google is using anticompetitive practices tho, they are just spending their money because they have too much
But seriously though, they may eventually get to the monopoly percentage.
The antitrust people will say sorry Google you must give some of your search/advertising clients to your competitors.
What do you think Google's clients will say/do?
having a monopoly is not illegal...however using anti-competitive practices to obtain/keep a monopoly is illegal. As faraaz said, I don't think google is using anti-competitive practices.
It's amazingly jarring when I use others' machines, realizing just how much advertising I'm not seeing. Unreal.
Atlas, the biggest competitor to DoubleClick will likely have MS, Yahoo et al. bidding for it.
You sure about that figure? Seems extremely high for a few months of surfing, they don't put uncompressed MPEG2 into ads you know.
But yes, I share the same sentiments. But, that's why I carry a version of portable firefox on my usb equipped with the adblockplus extension (among others). I don't ever use other people's browsers.
I feel sorry for you... reinstalling on a Boxing Day (unless specific reasons like not celebrating Xmas due to religion)
But 3 billion dollars is really a waste...
And as for the Online services offered, Microsoft's Ray Ozzie is blowing up the google with his ideas on online stuffs...we will be getting those services this year end..need to see whether google will be another netscape :-)
But 3 billion dollars is really a waste...
And as for the Online services offered, Microsoft's Ray Ozzie is blowing up the google with his ideas on online stuffs...we will be getting those services this year end..need to see whether google will be another netscape :-)
Your dreaming...
Microsoft has a big fight on their hands, they are going to have to fight an uphill battle if they want to get anywhere in the online advertising biz. Although there is room for Microsoft to take a share, its highly unlikely that Microsoft will just come in take the crown away from Google.
It does smell of a monopoly.
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