And just this week, two more announcements highlighted the tremendous activity in this space:
What does all this mean? It means that each of the leading Internet companies believe that they can position themselves to succeed in the online advertising space -- through the free market, and without government intervention. These companies believe that there are many ways to compete in this business.
Google, Microsoft, AOL, Yahoo, and others are developing different combinations of capabilities in an effort to provide the most compelling offering to advertisers, publishers, and customers. For example, Microsoft’s purchase of aQuantive will eventually result in it owning an ad serving business that competes with DoubleClick, and will also make Microsoft one of the largest interactive advertising agencies in the U.S. In DoubleClick, Google is acquiring a technology that delivers and measures the performance of display ads – a technology that is critical if we are to compete in display advertising.
Beyond the different approaches that companies are taking, more capital infusion into the online ad business also means that more entrepreneurs will enter it, too. In fact, we have noticed that several startups in the online advertising space have received venture funding since April. More entrepreneurs, more market participants, and more capital are combining to create more competition and innovation.
Brian McAndrews, the President and CEO of aQuantive (which, as noted above, has been purchased by Microsoft) recently said about online advertising: "We're in the first or second inning of a long game here. There's no monopoly on innovation. I don't think you're going to see two or three big players and then game over. There will continue to be a broad range of companies." We couldn’t agree more.
The "... through the free market, and without government intervention," part does not follow from the list of acquisitions. At least one of those competitors has asked the government to scrutinize your merger. You would be better off responding to that directly.
Microsoft picked up aQuantive in response to your DoubleClick acquisition. Your point is null and void.
"Microsoft picked up aQuantive in response to your DoubleClick acquisition. Your point is null and void." I don't see how that would matter. This is just one of the companies that this article discussed and it's foolish to assume that the only reason that Microsoft acquired aQuantive was in response to the DoubleClick acquisition.
Microsoft must have planned the acquisition of aQuantive before Google bought DoubClick. You don't do a $6 billion deal in just over a month.
What kind of economics are you smoking? Horizontal mergers and acquisitions between competitors never equals more competition.
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