cameronm

Why aQuantive Was Worth Twice As Much As DoubleClick

On the valuation the real question is not the multiple of AQNT revenue and earnings that they paid, but what is the impact on value and uplift of Microsoft's ad inventory that AQNT will give them. If AQNT can take $500M of Microsoft ad inventory and double it's value in the first year (and I have no idea if they can do this -- it is a what-if) that would represent tremedous value, and of course value that is not at all reflected in examining AQNT's P&L as an independent company.

That said, of course it is an insanely expensive deal by normal metrics. Why? Two reasons, I bet Google was bidding if only to drive up Microsoft's cost and I bet there was seething anger and downright blood-lust over losing the Doubleclick deal.