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« Webkinz: Second Life for the elementary school set | Main | Despite Web and Cable, Americans Remain Oblivious to Public Affairs »

April 13, 2007

Google acquires DoubleClick for $3.1 Billion

Doubleclick Google has announced its acquisition  of DoubleClick for $3.1 Billion in cash, outbidding Microsoft.

DoubleClick is the industry leader in display advertising placement. Combined with Google's PPC ad network, it provides Google with dominating control over Internet advertising. 

The price, roughly 10x revenue, seems high (particularly in a cash deal) but clearly they did not want Microsoft to gain a strong foothold in this market. 

From an advertiser perspective, this acquisition should be a good thing.  It will allow advertisers to buy all their advertising through one provider.  I'm not sure how media companies will feel about Google playing a bigger role in the control over advertising, though.

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