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.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Everyone in the world knew Microsoft had to make a move. Yahoo wasn't just a rumor, it was actually being considered.
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I dont know how microsoft will ever make its money
/
$200,000,000/year
=
30 years
In 30 years, technology will have changed so much, that this product will likely no longer exist.
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Microsoft Fever
You've done it again, Microsoft. Thanks for the shock.
Brandon Watts
Criteo Evangelist
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How can anyone not think Microsoft is in a corner.
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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.
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There are better ways to spend $6B
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