Google – Why They Had To Buy Double-Click

Google recently bought Double-Click for a huge amount of cash valued around 3.1 billion dollars, not because they were eager to consume another company, but because they didn’t want Microsoft to get it. So what is Double-Click and what did they do to receive mega-bucks for their company?

Double-Click was founded back in 1996 as a internet serving advertisement agency which includes some of the major big boy account like GM, Coca-Cola, Visa USA, Nike and other major high profile companies. Double-Click was one of the few companies that survived the big bust of companies and has a solid track record of being a high-income company.

So it was natural for Google to want to expand its empire by adding Double-Click to the list of acquisitions. But did Google over pay to grab this highly prized company? Maybe. But Google had very little choice in the matter. It seems they were bidding against Microsoft, Yahoo and Times-Warner for this gem. And Google could ill afford to have one of their competitors scoop up the company. It also seems that Wall Street insiders were not jumping for joy and Googles stock took a slight dip at the close of trading.

Next step is for Google to get past the regulators for the purchase to be approved. Once complete, Google will maintain it’s edge over others in the Internet advertising business and should continue to maintain their dominate online presence. But is it good that Google has grown so strong and powerful in a relatively short period of time? Will Google be able to maintain it’s public perception of being one of the good guys? Or could this be the pebble in the shoe that hurts Google?

I would like to think that this buyout of Double Click will be nothing more than a business deal like any other. That Google can continue to provide consumers and advertisers a easy to use and fairly priced advertising model that will benefit all of us. But what do you think?

Is Google buying Double-Click be good for all of us or not?

Comments welcome.

[tags]google, double-click, buy, internet, advertising, [/tags]

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I have been writing for Lockergnome for eight years.