WPP Group to Buy 24/7 Real Media

Advertising firm WPP Group (WPPGY Quote) has agreed to acquire 24/7 Real Media(TFSM Quote) for about $649 million.

David Moore, CEO of 24/7 Real Media, said in a press release Thursday that the "transaction further validates the importance of emerging, digital media to the global advertising market and 24/7 Real Media's role in strengthening the role of digital media among WPP companies."

The deal, which places a 4% premium on 24/7 Real Media's market cap, given a recent run-up in the stock on hopes of an acquisition, extends the wave of deals taking place in the online ad space.

Recent weeks have seen the $3.1 billion acquisition of privately held DoubleClick by Google(GOOG Quote) , and the $680 million deal by Yahoo!(TFSM Quote) to acquire the remaining stake in Right Media.

Many onlookers also expect Microsoft(MSFT Quote), which had initiated talks with DoubleClick, to take out another company in the near future.

Shares of 24/7 Real Media gained 3.8% on the news to $11.69. Shares of ValueClick(VCLK Quote) and aQuantive(AQNT Quote), two other online advertising concerns, also gained 2.6% and 3.5%, respectively, in early Thursday trading.