Internet

Return to Article

Report: Google Joins DoubleClick Derby

Vishesh Kumar

Google(GOOG Quote) has now joined the fray to acquire online advertising firm DoubleClick, The Wall Street Journal reported Monday.

Last week, the Journal reported that Microsoft(MSFT Quote) was in talks to acquire DoubleClick in an effort to bolster its position in the burgeoning online advertising market.

But Google's bid doesn't come as a complete surprise, because the search giant was expected to launch a product similar to that offered by DoubleClick.

Indeed, DoubleClick counts Time Warner's(TWX Quote) AOL unit as one of its biggest customers. Observers had noted that an acquisition by Microsoft would possibly put that arrangement in peril, as AOL already has a partnership with Google, which is also a minority shareholder. Competition from Google to snap up DoubleClick could push the company's price tag above $2 billion, the Journal cited unnamed sources familiar with the situation as saying.

Yahoo!(YHOO Quote) and AOL also approached DoubleClick about a possible acquisition, though it's unclear whether AOL is still considering such a deal, according to the report. DoubleClick is owned by private-equity firm Hellman & Friedman.

As Google and Microsoft ratchet up their efforts in the online ad market, Yahoo! is likely to feel the heat as well. The Internet giant currently leads the market when it comes to graphical advertising. But a push by Google and Microsoft could make competition more intense.