24/7 Real Media Shares Skyrocket on $1 Billion Microsoft Buyout Rumor

It what may be the latest in a spat of internet advertising acquisitions, Microsoft is looking to buy internet ad firm 24/7 Real Media Inc. for about $1 billion, according to unnamed sources in the New York Post. The Post reported last month that WPP Group was a suitor for the company. Microsoft, the Post says, is driven by recent competitors Yahoo and Google acquisitions of internet ad firms Right Media and DoubleClick (respectively). It says Microsoft's fear of being outdone, and its deep pockets, could potentially drive the price up even further; analysts recently placed a $600 million price tag on the company. A Microsoft spokeswoman described the report as speculation and rumor. There had been speculation Microsoft was considering a bid for DoubleClick competitor aQuantive, but some analysts say its creative ad agency AvenueA/Razorfish doesn't fit within Microsoft's business outlook. 24/7 Real Media shares are up 33.3% in pre-market trading.

Sources: New York Post, Reuters, ZDNet
Commentary: WPP - 24/7 Real Media Rumors: A Deal Makes Sense • Yahoo Purchase of Right Media Gives It Added Liquidity, Exit From DoubleClick • ValueClick: An Online Advertising Value Bet
Stocks/ETFs to watch: 24/7 Real Media Inc. (TFSM), Microsoft Corp. (MSFT), WPP Group plc (WPPGY), Google Inc. (GOOG), Yahoo! Inc. (YHOO), aQuantive Inc. (AQNT), ValueClick Inc. (VCLK)
Related: 24/7 Introduction to Digital Advertising

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.