AQuantive Leads Online Investments

In its largest acquisition ever, Microsoft plans to pay US$6 billion in cash for online advertising company aQuantive. The acquisition represents a major expansion of Microsoft’s advertising efforts—instead of selling advertising only on Microsoft sites and properties, the company will provide services and technology platforms for advertisers and publishers. The acquisition is not only driven by fear of Google, which is building a strong lead in online advertising and gradually encroaching on Microsoft’s core software franchises—it’s also a clear indication of Microsoft’s urgency to build a third major business to augment its maturing desktop and server software businesses.

Microsoft has also taken a minority stake in job-listing site CareerBuilder and extended its partnership with MSN through 2013; acquired ScreenTonic, which develops technology for placing advertisements on mobile phones; and sold Vexcel Canada, a subsidiary of Vexcel, which Microsoft bought in 2006 to provide imagery and technology for its Live Local mapping site.