Google cleared for DoubleClick merger

Source: Technology Digital

Date :12/03/2008 03:39:33

Following EU clearance, Google Inc. has acquired graphical advertising company DoubleClick for $3.1 billion in a move sure to worry its rivals.

Approval from the European Commission regulators was the last remaining hurdle for Google in its hopes to capture DoubleClick. The merger was cleared with the commission ruling that it would be unlikely to harm the consumer, following an “in-depth market investigation”.

News of the ruling sent share prices in the company surging by more than six percent to close at $439.84.

Due to Google’s continued dominance in the realms of targeted ads, the commission suggested that the two companies could not be considered competitors, while other companies – notably AOL, Microsoft Corp. and Yahoo! Inc. – would exert sustained pressure and competition on the market.

Google is naturally very excited about the proposition, with CEO Eric Schmidt commenting: “With DoubleClick, Google now has the leading display ad platform.”

Cross-media opportunities

This takeover is the latest high-profile boon for the company, following its 2006 acquisition of online video leader YouTube for a reported $1.65 billion.

The combined technologies available to Google provide exciting new advertising possibilities in many sectors, with the company already boasting a wide portfolio of targeted text ads and video ads placed in content on YouTube.

With recent speculation about the Microsoft-Yahoo! merger, Google will be keen to stay ahead of the online curve and keep the competition firmly in its wake.

March 12, 2008