Monday, September 24, 2007

Microsoft makes a Quantitative move!

In one of its biggest acquisition ever, Microsoft has acquired a Quantive, the online marketing biggie at a whopping price of $6 billion. With this deal, Microsoft has complied to its previously outlined vision of providing the advertisement industry with a world-class advertisement platform. “The deal represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet,” said Steve Ballmer, CEO of Microsoft . The deal has a lot of potential for Microsoft as it would enable the company to strengthen relationship with advertisers, agencies and publishers.

Microsoft , which is a dominant player in online content with MSN, it now aims at becoming a Web powerhouse with this acquisition. It will also allow Microsoft to have access to a Quantive’s brands like Atlas (advertiser’s tool for better return generation on ad campaigns) and DRIVE pm (a service that matches ads with Web-page inventory). Noticeably, Microsoft has been on a spree of acquisitions, a move to become an unparallel name in online market. In 2002, it bought Navision, the Danish small-business soft ware-maker at a price of $1.45 billion. In more recent times, Microsoft acquired Massive, online video-game advertising firm, and Screen Tonic and Motion- Bridge, mobile-phone advertising companies. However, its latest move to acquire a Quantive seems to be a counter move against Google’s latest buyout of Ad firm Double Click.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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