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Latest Business News

Microsoft Pays $6B for Online Ad Company

Friday, May 18, 2007 5:11:32 PM
By SETH SUTEL

Stock prices for Microsoft and aQuantive are shown at the Nasdaq marketsite on Friday, May 18, 2007 in New York. Microsoft Corp. said Friday it will buy online advertising firm aQuantive Inc. for about $6 billion in cash, paying a premium to catch up with major ad deals by its competitors over the last six weeks.  (AP Photo/Mark Lennihan)NEW YORK (AP) - Microsoft Corp., not wanting to get left behind rivals in an online advertising boom, agreed to pay $6 billion in cash to acquire aQuantive Inc. on Friday, a leading agency for Internet ads which also has powerful technology that serves display and banner ads to other Web sites.

The eye-popping premium of 85 percent Microsoft is paying for aQuantive reflects a heated race for the few remaining online advertising businesses, as media and technology companies jockey for position in the Internet advertising market.

The deal caps a month of furious activity in the sector which began in mid-April with Google Inc.'s $3.1 billion purchase of DoubleClick Inc., a company that provides technology used by Web site publishers to deliver advertisements to viewers.


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