Google acquired DoubleClick, a pioneer in online advertising, for $3.1 billion in cash, making Google a major player in online display advertising. Despite DoubleClick's revenues being estimated at $300m-$400m, the high price reflects intense competition in the online advertising market. Google aims to cross-sell DoubleClick's services to its existing search advertising customers. The deal allows Google to expand its advertising market as its core search advertising business slows down. The integration of search and display advertising is a significant benefit of the acquisition. DoubleClick's private equity owners profit handsomely from the sale. Here is an article from the Financial Times.
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