Breaking news story: Microsoft acquired aQuantive Inc. for a mere $6 billion. The deal, as usual, is a defensive move: Google bought DoubleClick Inc. and declining-wanna-be-Google took over Right Media (Publicis purchased Digitas, WPP 24/7 RealMedia)
The deal is the biggest amount of money Gates' company ever spent for anything. Why advertising though?
Software solutions are integrated everywhere in our daily lives, meaning that a global software company intervenes in all aspects of our lives.
Sure, advertising is one of those daily thing that greatly influences our behaviors. However, as Prudential Securities analysts John McPeake puts it: "It just doesn't feel like it is in (Microsoft's) DNA".
I agree. Microsoft originally specializes in office solutions: Offering ways to target specific audiences through contextualized analysis and with a target-adapted message, well...It sounds like something Google would do, not Micrososft.
Now the computing market is growing and changing extremely fast. Trends have to be anticipated, reactivity has to be sharp, and poor strategic decisions can turn great eagles into dumb pigeons (Y!). Who knows, maybe Microsoft is going to become a major advertising player, selling American Idol mousepads to teens and home alarms to retired people.
The question is 'how?'. Microsoft only has MSN as search engine, which represents 1 solo percent of total search engine market shares. Microsoft does not have sex appeal. Microsoft "Wow" commercial for Vista was the lamest ever (I have never wowed once with Windows).
Is that Windows strategy after all? Shall we call it the wow-strategy? Or the art of astounding with nonsensical decisions.
My advice for C-cutives and chairman: Buy the Jackass trademark. Gates should pull out some crazy S&M tricks and launch the video through its newly-bought advertising company.
Maybe this way, Gates will look as cool as Schmidt.
Microsoft Pays $6B for Online Ad Company
