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Summary:

Google just bought Double Click for $3.1 billion, news which wasn’t received too well by the stock market – shares are trading down a buck-and-change a share. The all-cash deal is almost twice what Google paid for YouTube, the New York Times reports. The amount Google […]

Google just bought Double Click for $3.1 billion, news which wasn’t received too well by the stock market – shares are trading down a buck-and-change a share. The all-cash deal is almost twice what Google paid for YouTube, the New York Times reports. The amount Google spent is shade under Google’s revenues in the fourth quarter of 2006 ($3.21 billion) and what the company earned in entire 2006. At the end of 2006, Google had $11.2 billion in cash.

“Google really wants to get into the display advertising business in a big way, and they don’t have the relationships they need to make it happen,” said Dave Morgan, the chairman of Tacoda, an online advertising network. “But DoubleClick does. It gives them immediate access to those relationships.”

One thing is becoming clear – Google wants to dominate the online advertising business, and will pay anything to keep rivals like Microsoft on a weak footing. It was rumored that Microsoft was considering a bid for DoubleClick for around $2 billion.

Also: What is the future of Ad Exchanges?

  1. [...] Twitter feed: Google is buying DoubleClick for $3.1-billion (TechCrunch has it here, Om has it here, and the New York Times has a story here). As reported in various places, the search engine was [...]

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  2. [...] from buying it, which is easily worth a few extra billion.  Read more about this at TechCrunch or GigaOm  I’m very eager to see the opening bell tomorrow on the GOOG stock.  What are your [...]

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  3. [...] This private equity firm made the deal of a lifetime. A lot of people are talking about this deal – it will make waves in the advertising industry as Google is looking like the only player in [...]

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  4. GOOG closed down $1.10 but that’s hardly “news which wasn’t received too well by the stock market”. $1.10 is less than a quarter of a percentage point for GOOG.

    On many trading days, GOOG moves a lot more, so it would be more accurate to say that the market really didn’t react at all to the news.

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  5. [...] Om Malik at GigaOm: Google just bought Double Click for $3.1 billion, news which wasn’t received too well by the stock market – shares are trading down a buck-and-change a share. The all-cash deal is almost twice what Google paid for YouTube, the New York Times reports. The amount Google spent is shade under Google’s revenues in the fourth quarter of 2006 ($3.21 billion) and what the company earned in entire 2006. [...]

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  6. In addition, only 2.7 million shares of GOOG traded hands today, making it their lightest session of 2007. More than anything else, the market really yawned at Google’s news.

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  7. I don’t think that 3,1 Billion is for “display advertising” only, that connections will help Google to access “video advertising” for YouTube.

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  8. [...] läuft das über alle Ticker und die üblichen Verdächtigen schreiben sich die Finger wund. Und SPON weiss auch warum: “(..) Mit [...]

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  9. [...] by livepaola on April 14th, 2007 Here are TechCrunch, GigaOm and NYT news. The multiple is quite high and Google’s stock is temporarily down. I’m [...]

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