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SEATTLE - Microsoft will buy aQuantive for US$6 billion ($8.2 billion, paying an 85 per cent premium to snap up one of the last large independent companies in a consolidating web advertising market.
In the biggest acquisition ever made by the world's No 1 software maker, Microsoft said it would pay aQuantive shareholders US$66.50 a share, a hefty premium to the company's closing share price of US$35.87 on Thursday.
Shares of aQuantive shot to US$63.95 in Friday's Nasdaq trade. Microsoft fell 1.1 per cent to US$30.64.
The all-cash deal tops a dramatic one-month consolidation spree across the online advertising market sparked when Google agreed to buy DoubleClick for US$3.1 billion.
Yahoo followed by snatching up the 80 per cent of Right Media it did not already own in a deal valued at US$680 million. Last week, WPP Group said it would acquire 24/7 Real Media for US$649 million.
Ahead of the wave, French advertising giant Publicis agreed to buy online ad agency Digitas in December for US$1.3 billion.
Microsoft of Redmond, Washington said it would acquire aQuantive, based in nearby Seattle, to expand its push into internet advertising through aQuantive's tools for serving up online ads and tracking their impact.
"This deal takes our advertising business to a new level, and we are committed to earn a bigger slice of that US$40 billion pie that's growing," said Kevin Johnson, president of Microsoft's platforms and services division.
ValueClick, the last sizable independent player in the online advertising market saw its shares jump as much as 12.5 per cent to US$31.36.
AQuantive helps advertisers target online ads through its Atlas technology unit and offers website development services through its design agency Avenue A/Razorfish.
It also operates an online advertising network that connects buyers and sellers and provides behavioural targeting for advertisers of website users.
- REUTERS
