Microsoft Snatches aQuantive

Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) agreed to pay $6 billion for aQuantive (AQNT Quote - Cramer on AQNT - Stock Picks) in a deal to expand its digital media presence and better compete for online advertising.

aQuantive shareholders will get $66.50 a share in cash -- an 83% premium to Thursday's closing prices.

"This deal expands upon the company's previously outlined vision to provide the advertising industry with a world class, Internet-wide advertising platform," Microsoft said Friday morning, "as well as a set of tools and services that help its constituents generate the highest possible return on their advertising investments."

The deal is expected to be completed in the first half of Microsoft's fiscal year 2008. The acquisition is not expected to have a significant impact on the financial guidance previously issued by the Redmond, Wash., software giant.

aQuantive, which has some 2,600 employees, will continue to operate from its Seattle headquarters as part of Microsoft's Online Services Business.

The deal seems to offer convincing proof that Microsoft isn't near a big tie-up with Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks), as media reports suggested in recent weeks. Both Microsoft and Yahoo! are struggling to compete with online ad titan Google (GOOG Quote - Cramer on GOOG - Stock Picks).

Early Friday, aQuantive surged 80% to $64.45 and Yahoo! slipped 30 cents to $28.27. Another widely rumored online buyout candidate, scandal-hit jobs site Monster (MNST Quote - Cramer on MNST - Stock Picks), rose 2% in sympathy.