Microsoft Wanted DoubleClick But Now Wants to Stop Google from Getting It
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On Friday, Google announced its plans to acquire DoubleClick for $3.1 billion beating the competition, which included Microsoft, Time Warner, and Yahoo. But now Microsoft, AT&T, Time Warner, and other Internet and media companies are publicly opposing the deal and encouraging antitrust regulators to take action to prevent it from happening.
The numbers being thrown around point to Google and DoubleClick handling more than 80% of ads on third-party websites. But the irony is that no one seems to care what the numbers would have been had Microsoft purchased DoubleClick: perhaps not 80% but a high percentage nonetheless.
That’s why it’s hard for me to take Microsoft’s anti-competitive concerns seriously (well, that and Microsoft’s track record of being on the side it’s now so ready to oppose). Call me a cynic, but I’m not convinced that these companies are opposing this deal for idealistic reasoning such as “protect the consumer, competition is good.” It’s more likely a self-preservation reaction that helps further their own agendas.
But I suppose I can’t blame them for doing what they’re paid to do. Here’s Brad Smith, Microsoft general counsel, explaining the situation:
“Google’s purchase of DoubleClick combines the two largest providers of online advertising delivery and is going to reduce substantially the market competition on which Web sites rely on to provide advertising.”
And AT&T’s concerns according to Jim Cicconi, AT&T’s senior executive vice president of external and legislative affairs:
“We think it’s real important that the antitrust authorities take a real hard look at whether or not this gives Google not only market power but enhances market power they already have… Google seems to be positioning itself very intentionally in the dominant or controlling position in being the single broker of advertising on the Internet.”
And, of course, Google’s predictable response:
“We are confident that this will pass regulatory review… We do not believe this acquisition is anti-competitive, as it promotes a vibrant, healthy market for online advertising.”
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August 20th, 2008 at 3:28 am
[...] importantly, significant management changes at both companies. Last month, Microsoft and Yahoo both lost the chance to buy DoubleClick, the online ad company which Google promptly acquired for $3.1 [...]