Microsoft to Purchase DoubleClick?

Dennis Faas's picture

Online advertising company DoubleClick is looking for a buyer, and many analysts speculate that Microsoft is going to spend the big bucks necessary to acquire the company.

In 2005, the private-equity firm Hellman & Friedman purchased a majority stake in DoubleClick for about $1.1 billion. Two years later, the company has enlisted Morgan Stanley to find a buyer for the company willing to pay at least $2 billion. (Source:

Will Microsoft pay the hefty price tag? Many say yes. Microsoft has been lagging behind Google on the advertising front, and the release of MSN AdCenter has produced underwhelming results. Even Yahoo has gained impressive track with their advertising efforts, leaving Microsoft behind. DoubleClick, widely used by online advertisers, could give Microsoft a boost in their advertising. (Source:

DoubleClick brought in about $150 million in revenue last year, of which more than $100 million came from serving ads for publishers and delivering ads from advertisers. (Source:

Although Microsoft has refused to comment, industry analysts have remained loose-lipped. Global Equities Research's director of research Trip Chowdhry said that the acquisition is more than a rumor. "Contacts tell us this is very likely," he said. (Source:

Chowdhry also claimed that the acquisition could alleviate some of the pressure to catch up to Microsoft's rivals. Further, he estimates that Google could lose up to $120 million if Microsoft purchases DoubleClick. (Source:

AG Edward analyst Kevin Buttigieg echoed Chowdhry's sentiment that the acquisition could be a blessing for Microsoft. "DoubleClick provides a web-publishing platform for Internet ads that we believe would provide a boost to Microsoft's online services ambitions which have so far been lackluster," he said. (Source:

With Microsoft keeping mum about the rumored acquisition, it's difficult to tell what will come of the potential DoubleClick sale. On the other hand, it's interesting to note that soon before Microsoft purchased Tellme Networks last month, a representative dismissed the reports as "rumor and speculation." (Source:

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