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May 18, 2007



What do you think of the valuation Microsoft paid for Aquantive? Does your corporate development team have anyone who is competent in planning deal strategy? Clearly you guys got backed into a corner to overbid on the last remaining internet agency of size. I guess when you're spending shareholder money, it doesn't really matter though, right?

John Ebbert

In my opinion, this purchase is not a waste of shareholder money. It seems to me Microsoft was very smart with the acquisition and will see a lot of value going forward - not the least of which is ownership of Atlas - key competitor to GoogleClick's DART. Atlas is a cornerstone of the all-important advertising/agency relationships.


Any idea why trading in AQNT's shares spiked before close of trading yesterday? How well does Microsoft enforce its policies and procedures around acquisitions? How well do they ensure that other parties (lawyers, diligence teams, etc...) enforce those same policies? Should be interesting to watch this play out.


Top tier Internet growth companies can make about 33% profit on each dollar of sales. So, triple the acquisition price to get to the revenues needed to break even.


Correct me if I'm wrong, but isn't aQuantive US-only?

Shouldn't Microsoft be looking at online advertising on a global scale, like Google already does, and not just the US?

Steve Morsa

Don--would be great to hear YOUR insight/take on this deal; assuming you're able to state it in a public forum like this.

You've said in the past that you--and the Micro leadership--felt that the best course moving forward would be to pick up key assets/ companies/ innovations no more costly than 10-50 mill or so per...that there was little point in paying big bucks for "stuff" your own folks could create/build yourselves...

You've already got great existing advertiser relationships...and a-Q's tech is; frankly; nothing you couldn't replicate, if not make even better w/in a year or so...or buy for 50-100 mill from any one of the many other "secret sauce" ad-serving companies out there.

How does 6 billion pencil out; even in the best of scenarios?

Is there something that most everyone who's scratching their heads over this--me included--missing here?


Online Advertising is in full swing. I think its going to go great for Microsoft. I have been reading about other acquisitions by Google, Yahoo and Adify. Read more about Online Advertising: More Acquisitions in http://sramanamitra.com/blog/1006

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