Google Acquires DoubleClick for $3.1 Billion, Faces Challenges by Competitors

Apr 16, 2007 • 9:28 am | comments (0) by twitter | Filed Under Other Google Topics
 

In one of Google's costliest acquisitions, on Friday, the Google blog announced (as did the Google AdSense Blog and the Google AdWords blog) that they were acquiring the DoubleClick online advertising firm for $3.1 billion. A WebmasterWorld thread discusses the acquisition more closely.

Is Google an ad agency or a search giant? One reader feels that as Google continues pursuing advertising channels, advertising is its primary focus:

Wow, changes the whole makeup. Guess Google is now officially an ad agency that just happens to dabble in search.

Not everybody is optimistic:

The conflicts of interest are almost too many to list. This should make a lot of people nervous about their data.

Google's strategy is heavily questioned. Did were they trying to sink Microsoft? Many readers felt that way, especially feeling that Google is challenging anti-trust laws.

Obviously Google overpaid (in all cash too), but its more of a strategic move & Sergey's thinking would be in the big picture $3.1 billion dont matter much.

Wow, thowing away 3.1 billion just to shut MS out on a temporary basis. Google is completely insane.

Can anyone say anti-trust? If the Dept. of Justice lets this go through, they will be creating what Microsoft has on OS's. It will be too late to stop them after this. Hopefully someone there is listening. Even though, the EU would probably also have objections. I would be surprised if their competitors do not submit anti-trust issues too. Google not evil? Yea, right.

It certainly feels that Google, with its finances, can control a lot of online properties. How much is too much? Another WebmasterWorld forums thread shows that Google is already being scrutinized for the purchase.

According to a Marketwatch article, competitors are asking the government to look more closely at the purchase.

"Google's purchase of DoubleClick combines the two largest providers of online advertising delivery and is going to reduce substantially the market competition on which Web sites rely on to provide advertising," The Journal quoted Brad Smith, Microsoft's general counsel, as saying. Smith said that, taken together, Google and DoubleClick would handle more than 80% of the advertisements served up to third-party Web sites when a user pulls up a page, the Journal reported.

Forum members see that this may be a valid argument. In fact, Techmeme already covers a number of blogs that are reporting about Microsoft's desire to have an extensive antitrust review.

Forum discussion regarding the acquisition continues at WebmasterWorld. You can discuss the competitor challenge at this WebmasterWorld thread.

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