Microsoft adds aQuantive to its ranks in $6bn acquisition

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Microsoft has shelled out $6 billion for online ad giant aQuantive as part of its quest to build an advertising platform for the web.

Under the terms of the deal, which should be closed in the first half of Microsoft's 2008 financial year, aQuantive's 2,600 employees will remain in its Seattle headquarters and operate as part of the software giant's online services business.

Announcing the strategic purchase today, Microsoft said that it will also use the acquisition to help it create a set of tools and services to help boost advertising investment returns for those involved in the online ad game, specifically advertisers, ad agencies and publishers.

By snapping up aQuantive, Microsoft will get its hands on the company's three primary brands: Atlas, DRIVEpm and Avenue A | Razorfish.

"The advertising industry is evolving and growing at an incredible pace, moving increasingly toward online and IP-served platforms, which dramatically increases the importance of software for this industry," said Steve Ballmer, Microsoft's chief executive.

"Today's announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximise the digital advertising opportunity for all."

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