I am just back from a long period of travel and catching up on last weeks developments - need to fiish a lot before I set out to travel again.
John Battelle writes, the fact that DoubleClick went to Google strikes me as a seminal moment in the history of this industry. Microsoft could not win it, despite the cash it was willing to spend. He reports that he learns that Microsoft did offer to match it, and was willing to pay even more to insure that Google did not corner the online ad market. But for whatever reason, the private equity firm that owned the majority of DoubleClick’s shares decided to go with Google.
John Batelle builds his thinking on the basis of what he could gather from his sources and need to be seen as such.I wouldn’t just like that take it as fact that DoubleClick was offered more by Microsoft and that they turned it down. If what John says is true( I would imagine that this should be true given his connections), I do think that it is indeed a significant win for Google. I have dealt with DoubleClick in the past and know its vast potential. For Google, this is indeed significant – they outdistanced a potential big time threat – Microsoft but at the same time have expanded their core service offerings. The deal is not just that – it has helped Google to increase its customer base as well. Google paid 100% more than what it paid to acquire YouTube. Its no wonder why competitors like Microsoft, Yahoo, AT&T are crying foul. I think more than anything else the allure of cash must have helped Hellman-Friedman decide in favor of Google considering their acquisition cost was a mere one billion and odd dollars. My good friend and fellow enterprise irregular points out that Hellman-Friedman is not just a doubleclick pony. I think, at the least, this would help Google keep its focus on what it wants to do for securing its future, not worrying about competition for some time. Moves like this put pressure on players like Yahoo – particularly in its ability to get more value out the current set of raw materials. Google’s aggression is not only going to help its cause but very likely to drive Yahoo and Microsoft to come together. Its interesting to see what all a shrewd marketleader can do – expand the market, consolidate its position and define what competition needs to do!!
Labels: Emerging Trends, Google, Mergers And Acquisitions, Private Equity