Redmond finally forks over $6 billion for a chunk of the online ad biz

Microsoft Corp.has completed its $6 billion acquisition of Web advertising firm aQuantive Inc aiming to better capitalize on the Internet's growth as a media outlet. In a regulatory filing on Monday, aQuantive said it had become a wholly-owned subsidiary of Microsoft and that its board had resigned in accordance with the deal terms.

Microsoft's largest-ever acquisition cleared regulatory hurdles last month, and aQuantive shareholders approved the acquisition on Thursday.

The world's largest software maker announced its purchase of Seattle-based aQuantive in May as it tries to build an online advertising powerhouse to compete against Google and Yahoo.

The aQuantive deal is the largest in a recent wave of consolidation within the Internet advertising sector as the Web's largest players try to shore up their market position and seek new sources of revenue.

Web search leader Google is waiting for regulatory approval of its proposed $3.1 billion purchase of DoubleClick, which helps advertisers serve and track ads online, in a move to enter the market for graphical display ads.

U.S. antitrust officials are studying the deal after Microsoft and other Google rivals said it could give Google too much control over online advertising.

Microsoft is expected to name aQuantive CEO Brian McAndrews to oversee ad-serving and technology within its online ad business, the New York Post reported on Monday, citing unnamed sources.

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/13/AR2007081300398.html