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With Google (GOOG) slowly rolling out its new Cost-Per-Action advertising platform, quite a few analysts are touting Google’s new platform as the ValueClick (VCLK) killer. I have to disagree.

Despite the 20% stock price drop last week on news of missed expectations, I’m in alignment with Terence Channon when he says that VCLK is a good long-term buy. ValueClick is positioning itself to remain the leader in affiliate marketing for a long time to come.

ValueClick's recent acquisition of MeziMedia for $100M cash (and an additional $252M if certain objectives are met)gives them a boost that even Google will have a hard time catching up with.

Was this acquisition a smart move for Valueclick and its shareholders? Absolutely. MeziMedia's properties attract approximately 11 Million shoppers per month. With estimated $40M revenue in 2006, this number is sure to increase after integration with ValueClick’s existing technologies and partners.

MeziMedia's internet properties include Smarter.com, a comparison shopping engine, CouponMountain.com, an online coupon directory, and MoreRebates.com, an online e-commerce portal with cash-back incentives for users.

I believe this acquisition solidifies that notion that VLCK is in it for the long-haul and that a buyout or merger is unlikely. Furthermore, I would expect more consolidation in this sector as companies like ValueClick look to expand their reach by acquiring smaller players. For example, popular sites like FatWallet.com, Shop4Zero.com, FlamingoWorld.com, and eBates.com could all be targets of future acquisitions.

If ValueClick can work on combining their existing platform with their newly acquired MeziMedia sites, I think we’ll see very strong Q3 and Q4 earnings, resulting in share price surpassing $30.00 by the end of the year.

Source: A Look At ValueClick's Future