Microsoft Slaps Google! Buys aQuantive - a Company Worth the Same as Vista, $6 Billion

Microsoft has slapped Google with an all out declaration of war. After the Mountain View search giant announced the acquisition of DoubleClick for $3 billion dollars, rumors emerged revealing that Microsoft had outbid Google but that its offer was refused. Consequently, Microsoft Senior Vice President and General Counsel Brad Smith raised "serious competition and privacy concerns" related to Google's monopoly over online advertising.

Well, Microsoft is not yet ready to go down and renounce its online advertising territory in Google's favor. The Redmond Company has just announced that it will acquire aQuantive, a global digital marketing company, for no less than $6 billion, concomitantly with plans to build an "Internet-wide advertising platform for advertisers, publishers and ad agencies."

"The advertising industry is evolving and growing at an incredible pace, moving increasingly toward online and IP-served platforms, which dramatically increases the importance of software for this industry," said Steve Ballmer, chief executive officer of Microsoft. "Today's announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximize the digital advertising opportunity for all."

With the expansion of the current advertising capabilities delivered by MSN, with the aQuantive advertising platforms and services, Microsoft addresses advertisers and ad agencies, media owners/publishers, but also the entire advertising ecosystem. Following the acquisition of aQuantive, Microsoft will offer services media planning and buying services, along with campaign management and inventory optimization and monetization solutions.

"Combining the talented people and deep technology and service expertise of these two companies will help make buying and selling media simpler, smarter and more cost effective for advertisers, agencies and publishers alike," said Kevin Johnson, president, Platforms and Services Division at Microsoft. "Joining the capabilities of these groups is an important step toward our goal of becoming an industry leading, Internet-wide advertising platform."