TechJunction

Google has agreed to buy DoubleClick for US$3.1 billion in cash (nearly double the size of their YouTube Acquisition which was in stock), an acquisition that strengthens Google’s status as an online advertising powerhouse.

This is bad news for Microsoft has they now fall even further back in the online advertising race. DoubleClick’s $300 million turnover a year will help Google further cement their place as contextual advertising leaders. The deal may make it harder for Microsoft’s struggling online division to compete with Google.

The deal is a clear loss for Microsoft and it stands to affect Yahoo as well, because with DoubleClick, Google gets a much-needed boost in display advertising, Sterling said.

For months, Google has been trying to expand its reach in online advertising into display ads, the area where DoubleClick is dominant.

DoubleClick Background

DoubleClick, founded in 1996, serves ad buyers such as ad agencies and corporate marketers, and ad sellers such as Web site publishers. It has two main divisions. Its Dart division provides tools and services to both buy and sell advertising, primarily display and rich media ads. Meanwhile, the Performics division focuses on search engine marketing, commonly based on the pay-per-click ads in which Google specializes.

Also consider reading Selaplana as he shares his views regarding this Google-DoubleClick acquisition.