Microsoft buys aQuantive for $6 bn

Microsoft announced the biggest acquisition in its history by buying digital marketing firm aQuantive for $6 billion in an all-cash deal.

"The advertising industry is evolving and growing at an incredible pace, moving increasingly toward online and IP-served platforms, which dramatically increases the importance of software for this industry," Microsoft CEO Steve Ballmer said in a statement.

The acquisition, the largest deal in the advertising industry, continues the frenzy of interest in online advertising as companies try to corner a bigger piece of this lucrative market that is expected to continue to grow, said CNET News.

The acquisition which took place on Friday comes a day after WPP bought 24/7 Real Media in a deal that valued the group at $649 million. 

Earlier, Google snapped up DoubleClick for $3.1 billion and Yahoo acquired the RightMedia advertising exchange outright for $680

million.

The aQuantive acquisition enables Microsoft to strengthen relationships with advertisers, agencies and publishers by
enhancing the company's advertising platforms and services beyond its current capabilities to serve MSN.

"It is a big bet on advertising monetisation for the long-term growth of the company and this is a significant step forward," president of Microsoft's platform and services division Kevin Johnson said in a statement.

He said the online advertising market would be worth $40 billion this year and was growing at 20 per cent a year.

The deal is expected to be completed in the first half of Microsoft's fiscal year 2008.