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]

Article Written by

I have been writing for Lockergnome for eight years.

  • Tim Hodkinson

    I’ve always found Double-click to be a colossal annoyance unlike Google’s adwords or adsense. Maybe they’ve changed, but everytime I edited my adblocker or content blocker I would find half the entries filled by double-click. I guess what I don’t like are ads that are totally irrelevant which is what Google partly did away with by creating keyword or context related ads. Hopefully they’ll reform double-click, or have them use their “powers” for good and not evil.

    On a related note, I’ve just discovered that my hosts file blocks access to my web stats account. It seems that many of the places I use for free web stats are blacklisted in my hosts file. So maybe I’m just as bad as double-click…

  • Syaf The Geek

    Google has make their move before they buy Double-Click like have their own CPA network as more and more people joined CPA network. This could increase the competition with M$ and Yahoo.

  • Ron Schenone

    Hi Syaf,
    Thanks for your comments.

  • Ron Schenone

    Hello Tim,
    Interesting take on double-click. Like you I employ a ad-blocker and I haven’t had double-click in my Firefox browser for a long time. :-)

    Thanks for your comments. Ron

  • T

    Right now Microsoft pushes every competitor around in every category and there should be at least ONE company who can push back in ONE category. I say let Google grow! After twenty years Microsoft finally has a competitor!

  • Ron Schenone

    I am sure a lot of folks feel the same way you do.
    Thanks for your comments.