A Double Take at DoubleClick

Online-ad pioneer DoubleClick may be changing hands again. Nearly two years after the company was bought out by a pair of private-equity firms in a $1.1 billion deal, Microsoft (Nasdaq: MSFT  ) may be willing to pay nearly twice that much to snap up the company. The Wall Street Journal is reporting that Microsoft is one of the potential suitors talking to the company.

It's easy to see why Microsoft would want in on DoubleClick. The company that started off as a leader in graphical banner ads has become a digital marketing specialist in recent years. Enabling companies to matter more in cyberspace can be a pretty sweet business. Just see how well ValueClick (Nasdaq: VCLK  ) and aQuantive (Nasdaq: AQNT  ) have done since DoubleClick last traded publicly two summers ago.

This is the kind of deal that Microsoft needs before it falls too far behind Google (Nasdaq: GOOG  ) and Yahoo! (Nasdaq: YHOO  ) in paid search. DoubleClick has been at it for more than a decade. In that time, it has amassed 1,500 clients, including Ford (NYSE: F  ) and (Nasdaq: TSCM  ) .

The company is on the cutting edge. Just as the portals are starting to roll out video ads, DoubleClick beat the industry to the punch by rolling out streaming live video ads last month.

Under a more predictable market, DoubleClick would probably be shaking off its suitors and going public on its own. Rather than take its chances and risk catching the IPO cooties, its best bet may be to tumble into Microsoft's waiting -- and hungry -- arms.

Microsoft is an Inside Value recommendation. Yahoo! is an active Motley Fool Stock Advisor pick. aQuantive has done well as a Rule Breakers selection.

Longtime Fool contributor Rick Munarriz believes that contextual paid search is far more effective than banner and rich media ads, though the streaming ads to promote New Line Cinema's movie 23 are intriguing. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 524728, ~/Articles/ArticleHandler.aspx, 10/21/2016 6:27:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
MSFT $59.66 Up +2.41 +4.21%
Microsoft CAPS Rating: ****
CNVR.DL $0.00 Down +0.00 +0.00%
Conversant CAPS Rating: *****
F $12.02 Up +0.05 +0.42%
Ford CAPS Rating: ****
GOOGL $824.06 Up +2.43 +0.30%
Alphabet (A shares… CAPS Rating: *****
TST $1.00 Up +0.01 +1.01%
TheStreet CAPS Rating: **
YHOO $42.17 Down -0.21 -0.50%
Yahoo CAPS Rating: **