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May 1, 2007

Microsoft eyeing 24/7 Real Media?

Posted by David Hunter at 9:35 AM ET.

After losing out to Google in the bidding battle for DoubleClick, Microsoft reportedly has its eyes on 24/7 Real Media, another Internet advertising company, according to Holly Sanders at the NY Post:

Eager to catch up with Google and Yahoo!, Microsoft has emerged as a contender, along with ad giant WPP Group, to buy Internet ad firm 24/7 Real Media, The Post has learned.

WPP Group is a large advertising holding company which owns Ogilvy & Mather Worldwide, Young & Rubicam, and JWT (formerly known as J. Walter Thompson Co.), as well as some PR firms, media buying firms, and market research companies.

Sources said the software giant is considering a price in the $1 billion range for 24/7 Media – a giant leap from the $600 million valuation analysts placed on the firm.

Microsoft, which has been kicking a lot of tires in the last few weeks, is getting serious about the ad firm after two of its fiercest rivals increased their online arsenals through similar acquisitions.

Yahoo! announced yesterday it would buy the 80 percent of online ad exchange Right Media it didn’t own for $680 million, valuing the entire firm at around $850 million. The acquisition follows Google’s $3.1 billion deal for DoubleClick, which serves up and tracks Web ads.

Microsoft’s deep pockets and fear of falling behind rivals could further drive up the price for 24/7 Real Media, one of the remaining players in the same space.

24/7 Real Media has an earnings release coming up on May 9, but lately they have been losing money. One wonders how much Microsoft will have to overpay to demonstrate that it’s really an Internet advertising player.



Filed under 24/7 Real Media, Acquisitions, Advertising, Coopetition, General Business, Google, Microsoft, WPP Group, Yahoo

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2 Responses to “Microsoft eyeing 24/7 Real Media?”

  1. ContextWeb blog Says:

    I have no doubt that Microsoft feels the need to respond but collecting an ad network seems to lack foresight of the current, online advertising trends.

    Transparency, control.. these are today’s goal for pubs and adverts – and driving bottom line revenue, of course.

    The new ad exchange announced by ContextWeb today is a realization of these goals – ADSDAQ.

    http://www.adsdaq.com

    The full info is available on the ContextWeb site:
    http://www.contextweb.com/aboutus/news-releases/adsdaqintro.html

    Thanks,

    John

  2. 24/7 Real Media goes to WPP -- Microsoft News Tracker Says:

    [...] At the start of the month the buzz was that Internet advertising company 24/7 Real Media was in play with Microsoft and WPP Group (an advertising conglomerate) competing for the acquisition. Today comes word that WPP won the deal for $649 million. There may not be any kiss and tell revelations about Microsoft wooing 24/7 Real Media, but regardless, the consolidation in Internet advertising is proceeding rapidly and Microsoft always seems to get left standing at the altar. Filed under Acquisitions, Coopetition, Microsoft, 24/7 Real Media, WPP Group [...]

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