Tycoons Row

Not many people can walk into a car dealer and say, “I want that in red”, and then walk out with their new car…paid for in cash. But if you could do this & only take a 1 week hit in your weekly paycheck, you would definitely feel like you made it.

In 2006, Google had generated approximately $11.2 billion in revenues. Just hours ago, Google acquired DoubleClick for $3.1 billion, an amount that was equivalent 4th quarter profits in 2006. Google is definitely making moves to be the face of advertising within the onlineTycoons Row › Create New Post — WordPress industry.

So what does a $3.1 Google Acquisition get:

• Improved Ad view experience - Ads will become more relevant to users
• Publishers will gain more access to additional ad inventory
• Advertising optimization - Search & Display ads (display will become a “new” trend) can be analyzed with new metrics

According to co-founder & president of Google Technology, Sergey Brin, “It has been our vision to make Internet advertising better - less intrusive, more effective, and more useful. Together with DoubleClick, Google will make the Internet more efficient for end users, advertisers, and publishers,” stated in the Double click press release.

DoubleClick is an expert in ad serving, affiliate marketing, rich media & video. The company is based in New York, employing over 1200 people. The company went private on a $1.1 billion deal by Hellman & Friedman and JMI Equity in 2005.

Just a few weeks ago, a new system was developed by DoubleClick, which was an ad-exchange that was to be similar to the Nasdaq. So in essence, publishers & advertisers will join together on one platform and advertisements can be auctioned off. For Google, this opens up their network of ad-auctions or monoplizes it. Google has its own auction-type ad-exchange, however, its available to only those in the google network. Now, with DoubleClick, not only will Google have access to an exchange of online ads, but also, an exchange of auctioning ads offline.

Although this news didn’t go that well in the market as GigaOm reported that “stock market - shares are trading down a buck-and-change a share,” I think that this will change tomorrow. An all cash-deal, and 2 strong companies combining will only increase a the strength of the stock.