Only one more potential impediment

Jul 6, 2007 16:01 GMT  ·  By

When Google announced a $3.1 billion in cash acquisition of DoubleClick in April, Microsoft initially responded with allegations of monopoly over the online advertising market, urging regulatory authorities to ensure that competitiveness will survive. The following month, the Redmond company made its move against the Mountain View search giant with the take over of aQuantive. But while Google only spent $3.1 billion on DoubleClick, an offer that Microsoft reportedly not only matched but also surpassed, the Redmond company ended up coughing an offer of no less than $6 billion for aQuantive.

Both the DoubleClick and aQuantive proposed acquisitions came under scrutiny from regulation authorities. And it looks like Microsoft has the green light to move on into the next step of what it called the merger with aQuantive. The fact of the matter is that Microsoft will attempt to compensate for the strategic peon that is DoubleClick with aQuantive. As far as antitrust concerns go, there is nothing standing in Microsoft's way to complete the acquisition. aQuantive revealed that the antitrust waiting period imposed for the proposed acquisition expired. There is now only one last potential impediment in Microsoft's way.

In August 2007, aQuantive's shareholders will have the final say over if the company will jump on board with Microsoft. With $6 billion on the table, the Redmond company is without a doubt in a very comfortable position. The only question is that if throwing $6 billion at aQuantive will prove a gambit worth while for Microsoft. Google has become increasingly synonymous with Internet search, and it leverages its massive audience in order to fuel its online advertising business. The fact that Microsoft raised monopoly issues over the acquisition of DoubleClick is a clear indication of Google's strategy value.

Kevin Johnson, president, Platforms and Services Division at Microsoft stated on the occasion of the aQuantive acquisition that "joining the capabilities of these groups is an important step toward our goal of becoming an industry leading, Internet-wide advertising platform." Industry leading are the keywords here, but Google is more than a worthy adversary, it is the industry leader....