Google takeover of DoubleClick

Google Finalizes $3.1 Bln Takeover Of DoubleClick - Update [GOOG]

The acquisition of online advertising technology company named DoubleClick is the

biggest takeover of Google in the nine-year history. It was announced after the European Commission cleared the $3.1 billion acquisition. The acquisition was approved in December by U.S. Federal Trade Commission.

According to the Google’s Chief Executive Eric Schmidt, DoubleClick provides display ad platform that will allow Google to introduce new technology and infrastructure that will enhance the performance of digital media.

The competitors of Google like Microsoft and Yahoo were against the deal since this acquisition would impart Google more power over the$40.9 billion online ad market.

Critics were of the opinion that this venture of Google would raise cost of ad serving for competitors. They also claimed that it would increase the market position of Google in the search advertising. Google would require the purchasers of the search ad space to purchase the DoubleClick’s tools.

It was founded by the European Commission that the merging would not lead to the marginalization of the potential competitors of Google since they offered credible alternatives for placing online ads on the sites.

The Commission believed that the effect of competition on the online intermediation advertising services market.

The California-based Google named Mountain View is the pioneer in the internet search and offers space for online advertising on its own sites. The company earns revenue by offering intermediation services to the advertisers and publishers by selling online advertising space on partner websites through “AdSense”.

DoubleClick sells ad serving, reporting and management technology to the website publishers and advertisers throughout the world. It guarantees that the advertisements are posted on the related sites.

Microsoft bought rival of DoubleClick, AQuantive Inc for $6 billion. According to the data of January Google has a share of 58.5%, Yahoo has 22.2% and Microsoft has 9.8%.

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