Microsoft is rumored to acquire online ad serving company DoubleClick Inc., which is also considering other potential buyers.
As a late comer into the online advertising space, Microsoft (MSN) has plenty of ground to make up, at least regarding acquiring the necessary technologies. Still with this deal, Microsoft will probably not be able to directly improve its market share on search in which it is fighting the uphill battle against Google. It may though be able to,
- Generate revenues from online ad serving within the network which DoubleClick has built.
- Compete with Google in the video search / advertising space. Many have predicted Google is currently looking to build an ad serving platform for its newly acquired video / social site, YouTube.
- Improve its portal, MSN, to compete with Yahoo! And AOL.
The majority of DoubleClick is currently owned by San Francisco based firm Hellman & Friedman, which believes DoubleClick is to sell for at minimum of US$2 billion. Last year, DoubleClick made US$250 million revenues in total, in which US$100 million came from serving ads online.