The NY Times reports that Google has purchased ad serving company DoubleClick for $3.1 billion. That’s a big number.
This was more than expected as Microsoft and Google were supposed to be in a bidding war that might head north of $2 billion, but $3.1 billion is huge. There are a few main thoughts that come to my mind based on this information.
1. The private equity firms that bought DoubleClick a couple of years ago for $1.1 billion, then sold off numerous Doubleclick business units for $600 million or so, and then sold the rest of company for $3.1 billion made out like bandits.
2. Google is obviously extremely serious about getting into the display advertising and ad serving world. What does this mean for Google’s long-rumored free ad serving product?
3. How much did Doubleclick’s yet to be launched, but early announced, ad exchange help their valuation?
Google has also released the FAQ for this deal for more insights into why they did it and what their plans are.