Microsoft/Google War - Both Are Winners. Really?
It is now official - Doubleclick is now part of Google.
Two days ago, on Dec 20, 2007, the Federal Trade Commission, FTC Approved the
Google-DoubleClick Deal. It has taken more than 8 months for the deal to go through.
FTC Announcement
Google Press Release
Bloomberg News
Why the deal went through?
It points to the latest Microsoft-Viacom deal as proof of sufficient market
competition…Three days ago, Microsoft struck a deal with Viacom…Microsoft will pay Viacom
$500 million over five years to serve ads over the media conglomerate’s online network.
Viacom dumped DoubleClick as its ad serving platform in favor of a deal with
Microsoft for advertising and content. Viacom’s decision to switch from DoubleClick
to Microsoft for online ads hence bolstered its case for the DoubleClick deal by
showing the high level of competition in the market.Obviously this serves up a golden
opportunity for Google as the Microsoft-Viacom partnership is proof of a competitive
advertising marketplace.On April 14, 2007, Google reached an agreement to acquire
DoubleClick, the online advertising company, from two private equity firms for $3.1 billion
in cash.
The deal was subjected to approval by the Federal Trade Commission (FTC).DoubleClick,
which was founded in 1996, provides display ads on Web sites like MySpace, The Wall
Street Journal and America Online as well as software to help those sites maximize ad
revenue.
Around the same time, DoubleClick has also introduced a Nasdaq-like exchange for
online ads that analysts say could be lucrative for Google.
For months, Google has been trying to expand its foothold in online advertising
into display ads, the area where DoubleClick is strongest. Google made its name
and still generates most of its revenue from search and contextual text ads.
The sale offers Google access to DoubleClick’s advertisement software and, more
importantly, its relationships with Web publishers, advertisers and advertising
agencies.
However, it was perceived that if the Google/DoubleClick deal went through without
any restrictions, the combined Google/DoubleClick would have access to the vast
majority of online database and could build profiles of users by mining data from
them as they use web services and applications.
Now, Google got DoubleClick…It’s final.
But who has won the war? Google or Microsoft?
Some say BOTH are WINNERS!
Really? I don’t think so.
The War shall rage on although, as at today, it seems a particularly good day
for both sides.
Don’t forget this: Viacom, whose holdings include MTV Networks and Paramount
Pictures, sued for a billion dollars for copyright infringement taking place on
YouTube (owned by Google) on March 13, 2007!
The war is far from over…
Get ready to watch more corporate “showdowns”!
Tags: Google, DoubleClick, Microsoft, Viacom, Google-DoubleClick deal, Microsoft-Viacom deal, corporate war, corporate game, acquisitions, online advertising
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