Independent Ad Firms A Disappearing Breed
from the and-then-there-were-two dept
The ranks of the large independent online advertising firm continues to thin. After Google’s purchase of DoubleClick and Yahoo’s purchase of Right Media, it was speculated that Microsoft would make a bid for 24/7 Media. Today, 24/7 Media announced that it had sold itself, but, alas, it was not to Microsoft. Instead it went to advertising firm WPP Group for $649 million net of cash acquired. That pretty much leaves Aquantive and ValueClick as the remaining two firms in this category. It’s not clear if Microsoft still wants to do a deal, but it will be interesting to see whether other old-line advertising firms feel the need to copy WPP, the way Yahoo felt the need to respond to Google. If so, it could push deal valuations even higher as the buyer pool expands while the number of targets diminishes.