Microsoft recently announced that they are moving forward with the acquisition of aQuantive for USD$6.0 billion. Microsoft is feeling threatened by Google with their recent acquisition of DoubleClick, followed by the acquisition of 24/7 Real Media by Yahoo!
It seems that every company is just out to purchase another company in hopes to stay on top of that industry. Microsoft wasted their money. Sure they have a lot of money to spend, but that does not mean they need to waste it. Why did Microsoft waste their money on the aQuantive acquisition?
It’s simple. Microsoft has been out of the advertising game for quite some time now. They tried to start-up adCenter which is similar to AdSense and the Yahoo! Publisher Network, but they will not succeed. Microsoft has tried to enter into an already-saturated market too late in the game.
Microsoft has the big bucks, but the problem they have is that they come too late to the game.
Google did not purchase DoubleClick in an effort to keep up with Yahoo!, but Google bought DoubleClick as a means to stay one step ahead of the competition in every arena. Google had only, at that time, stepped into the CPM and CPC realms, but now they are in the direct advertising realm with DoubleClick under their belt.
Looking at history of Microsoft, it does confirm that they simply play “catch up” instead of taking a big stride and being the first.
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