Is Microsoft's Aquantive Buy A Warning Sign?

from the at-the-summit dept

This morning’s announcement that Microsoft would buy Aquantive at a staggering premium has a lot of people wondering whether the deal might be some sign of a bubble. By almost any metric, the deal was very rich, which leads to some serious questions about whether Microsoft can get a good return on its investment. Everyone guessed that Microsoft still wanted to do a deal following its failure to win DoubleClick, but as Felix Salmon cleverly points out, the one silver lining for Microsoft after losing DoubleClick was that Google ended up being saddled with the enormous bill. Now it’s Microsoft’s turn to suffer the “winner’s curse”. To put it into a bit more perspective, it’s this will be the company’s biggest acquisition of all time, which is good evidence that the company desperately wants to diversify away from simply being a software company. Of course, with as much cash as the company has in its accounts, it can afford to make a few desperate moves.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Is Microsoft's Aquantive Buy A Warning Sign?”

Subscribe: RSS Leave a comment
RandomThoughts (user link) says:

This is good evidence that the company wants to diversify away from software? Wasn’t Balmers statement of that a while ago a good clue? At least you guys are not like Engadget, you really make sure you have ALL the facts before you cover something.

Everyone in the world knew Microsoft had to make a move. Yahoo wasn’t just a rumor, it was actually being considered.

Brandon Watts (user link) says:

Microsoft Fever

This deal is worth so much money that it’s trivialized the actual reason behind the purchase. So far, it seems like almost everyone has talked about the astounding amount of money that was placed on the table instead of what all of this will actually mean for the company.

You’ve done it again, Microsoft. Thanks for the shock.

Brandon Watts
Criteo Evangelist

Michael G. says:

How can anyone not think Microsoft is in a corner.

It’s the ol’ cliché ‘too big for its own good.” The time was right for Microsoft to grow like it did when it did but now that pace is getting too fast for even Microsoft to keep up. Nobody really wants to go to Vista, it’s only because we have to that most of us will. Some of us are going to be searching out better things and Microsoft knows they’re out there for us to use. They’ve been doing this for years. Now again it’s time to play catch-up and its costing them 6 billion to do it. I don’t even think they know themselves if they have the power to recoup losses at this price. Technology is not the place where there is ever going to ‘winner take all.’

Anonymous Coward says:

some people may remember something called “xbox.” with it, microsoft lost tremendous amounts of money, but successfully broke into a new niche: the living room.

for a company with as many financial resources as microsoft, not only can they afford to throw money around, but they also clearly are willing to take a financial hit, to expand their market.

we will surely see a bubble again (albeit a smaller bubble; investors have learned their lessons right?), but I do not feel microsoft’s acquisition of Aquantive should be interpreted as road sign hinting that another economic sinkhole is waiting just around the bend.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...