Microsoft just bid big bucks to buy ad company aQuantive. The net of this:
Content is not king. Distribution is not king. Money is king.
Microsoft has tried to go into the content business and the distribution business and has failed at both.
Google went into the advertising business. It has won. So now others are trying to catch up: WPP buying 24/7 and Microsoft buying aQuantive. With Razorfish in its stable, this is also a service company that builds platforms for media companies. The great need now is to enable the commercial infrastructure that supports the activities of this world.
Initial Thoughts on Microsoft Aquiring Aquantive…
At $6 Billion or $66.50, an ~85% premium over the previous days selling price that creates a price to earning rating of around 52, many people would consider this to be overpayment. With approximately $26 Billion in the bank that shareholders consisten…
[...] over the previous day’s close. It’s all over the blogs, too: here, and here, and here, and here. Good for my [...]