Today, Google joined the extensive list of suitors to buy DoubleClick, the provider of internet ad serving software. Google is reportedly joining Microsoft, Yahoo, and AOL in the list of suitors. Google’s arrival on the scene is likely to push the selling price of DoubleClick to around 2 billion dollars. Google’s arrival is reported to be stemmed by Microsoft’s interest in purchasing DoubleClick. For Microsoft and Google, buying the firm would enable them to market yet another service to businesses. The acquisition of the firm would also enable one of the companies to stop sending ads to the networks of its rivals while boosting its own revenue at the same time.
The question to ask in this particular situation is how much is too much, when purchasing a firm such as DoubleClick. There is much speculation that Google has entered the picture only to drive up the price that Microsoft was planning on bidding. If the price ends up around 2 billion dollars in would roughly double the amount of money the two partners invested in the firm, less than two years ago in 2005. I view the purchase of DoubleClick as a highly strategic one. Microsoft and Google are extremely competitive, always wanting to have an advantage against each other. Only one company will acquire DoubleClick, and more than likely will be overpaying for its services.
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2 comments:
This is interesting, The epic battle between Google and Microsoft. I don't know how much I agree with Google entering the race to drive the price up. I think that they legitimately want to make this purchase in order to become more profitable themselves. Who knows. What I do know is that Google has pioneered the world of search engines and is very sucessfull doing so. This is not to take anything away from Microsoft because we all know that company's story of sucess. Its all about competition and thats what this is.
$2 billion! That is absolutely crazy! I agree with you guys I think whoever wins will be overpaying. But, whose to say it is too much. It is all in the eye of the beholder. It may be worth that much money to them. For example, some people would pay thousands of dollars for an autograph from a baseball player, while other people would think that its crazy. Whoever gets DoubleClick will gain a huge competitive advantage. Leaving the other one to find something that they can use to differentiate themselves from everyone else.
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