More Proof Of What I Say About Them
Microsoft buys ad firm for $6bn:
Microsoft is paying $6bn (£3bn) to buy digital marketing firm Aquantive in its biggest ever acquisition.
The all-cash takeover will allow Microsoft to expand into the highly lucrative internet advertising market, that Google and Yahoo have targeted.
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But analysts are sceptical.
“There had to have been some desperation for Microsoft to pay the price that it did,” said Morningstar analyst Toan Tran.
“Sometimes, I am worried that Microsoft has Google-tunnel vision. It’s so worried what Google is doing that it becomes way too reactionary,” he added.
Microsoft is going after Google. They view Google as a threat and they want to bury them. This is what they do in every market they attack: they come in late, buy an existing player, destroy the price structure, and then screw things up for everyone else. Microsoft views everything as a zero-sum game – the only way to prosper is to be the last company standing in the wreckage of the market. If you’re a Microsoft stockholder you may have noticed that the strategy hasn’t been working lately.
Now, savvy media buyers are going to hold off on ad purchases to wait for Microsoft to slam the price down to nothing, and then sign long-term contracts.
