tchannon

Microsoft's aQuantive Deal: An Act of Desperation

Jordan - thank you for your comment. You are absolutely right - this really is more of a 1+1=3 acquisition than MSFT looking to incrementally add to the bottom line. Financially, MSFT can take it - even if AQNT goes to 0, the $6B is a small amt of MSFT's cash and they will make that up quickly via operations.

And, yes, 100% agreed that I am not privvy to the exact discussions that took place between MSFT and AQNT and saying it is 'too expensive' the day after could certainly be premature.

MSFT has yet to succeed they can compete with Google or Yahoo! on the Internet level and the world is certainly moving towards a more web-based rather than desktop-based environment. MSFT, I believe, acted more out of fear than definitive certainty that this deal will pan out. Only time will tell. I think financially the premium is way too high and will put pressure on MSFT's line items over the coming years, though not to the point of materially damaging their business - more like someone's spreadsheet will be hurting. In many ways, MSFT had no choice, it seems and the act was motivated out of a fear of missing out rather than a definitive business plan. I also believe VCLK would represent a better choice over AQNT due to my personal experience with working with both companies. I would imagine or surmise that MSFT and VCLK had discussions as well and in the end AQNT said what MSFT wanted/needed/was looking to hear and that is what closed the deal.

In the end, these forums are just a place to express opinions and create dialogue and I appreciate your feedback and you do make valid points.