Analyst Predicts The FTC Will Block Google’s Acquisition Of Doubleclick

Includes: DCLK, GOOG
by: Eric Savitz

Scott Clelland, a technology analyst who runs the Washington-based research firm Precursor LLC, Tuesday makes the startling prediction that the Federal Trade Commission will block Google’s (NASDAQ:GOOG) $3 billion deal to buy DoubleClick (DCLK). I haven’t waded through the long version of his analysis just yet, but his basic view is straightforward.

The FTC will block the deal, he asserts, because “it will enable Google to dominate online advertising and dramatically increase the opportunity for market collusion and price manipulation in the market for consumer click data, ad-performance tools, ad-brokering and ad-exchanges.”

A bold call; if he’s right it will certainly shake up perceptions on the Street. Writes Clelland: “I strongly believe that Google will soon displace Microsoft (NASDAQ:MSFT) as the lead focus of the antitrust community going forward.”

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