On May 18, 1980 Mount St. Helens erupted. Today Microsoft’s wallet erupted, bionic style.

Lots of stories in the RSS reader this morning are about Microsoft spending $6 billion to acquire the ad firm aQuantive. For those who thought M$ was going to wait on the sidelines in the online advertising space, this cash deal is a spoiler.

I just peeked over at Techmeme and as expected it’s an orgy of tech bloggers feasting on this juicy Friday news. While wrapping my mind around this deal, let me round up some hmm-worthy posts I’ve read on the subject from others below.

- Kara Swisher thinks the price of the deal is insane. Her disclaimer says her spouse, Megan Smith, has been an executive at Google search since 2003.
- Is this really that clear, Scott Karp? “It’s clear now that the media and advertising industries, which thanks to Google and Web 2.0 now include the software industry, will be dominated by a new breed of company — the vertically integrated media and advertising company.” All that’s clear to me is that Microsoft has opened it’s warchest and said to Google (and eBay) we’re ready to play.
- Jay Sears: “Is “frienemy” just a new way to say “coopetition”? Will this wave of consolidation result in the balkanization of the Internet?” Ya lost me somewhere between the doublequoted quasi-words and balkanization, Jay, but perhaps other readers will better be able to follow.
- I’m with you Mathew, I hadn’t ever heard of aQuantive until this morning either. Good thing Larry Dignan is on the case and gave a yearly recap from aQuantive’s SEC filings.
- Mary Jo Foley points out this is Microsoft’s biggest acquistion ever. As others have pointed out this is almost double the price Google paid to acquire Doubleclick ($3.1 billion)
- Greg Sterling: “The consolidation continues . . . and when the dust settles there will only be a small number of very large firms that control 90%+ of all online advertising.” But I wonder, Greg, what the remaining 10%+ will have for combined traffic? I’m guessing it’s a significant chunk of traffic. Might not be a lot of well known hitters, but there will still be a huge market in that remaining percentage.
- Howard Lindzon is glad he owns Valueclick (VCLK) stock (I do too) and plans to buy more. I’d probably buy more if Valueclick would shutter Commission Junction. I do not and have never owned Microsft (MSFT) or aQuantive (AQNT) stock. I do own Google (GOOG) and Yahoo (YHOO). There’s all the stock disclaimers.

Hmm thoughts
After reading all the posts out there on this subject I’m surprised to see there wasn’t a higher frequency of mentions about AdCenter. Microsoft has been horrible about promoting what they are doing with AdCenter and ever releasing a contextual ad strategy to rival Google Adsense and YPN.

In the press release linked at the top of this post, Microsoft’s Steve Ballmer fingers Xbox Live:

“Today’s announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximize the digital advertising opportunity for all.”

After reading this let me say again that Microsoft has done a horrible job with AdCenter to date. At the end of 2005 I encouraged Microsoft to get AdCenter in our hands, to show that advertising was an important part. Over the last 18 months they’ve done little more than kick tires and go after advertisers trying to market on their sites.

I still believe Microsoft’s golden goose advertising opportunity is micropayments. That’s been laughed off by non-believers when brought up in the past, but I won’t be dissuaded. When they can get people to pay upwards of $10 for HDTV movie rentals there is a big slice in that pie that webmasters could share in revenue-wise. AdCenter could start strong with webmasters in a niche that Google and Yahoo can’t touch. Where are they? Why don’t they pull the trigger?

Good or bad move?
This six billion dollar man move to acquire a company most readers probably have never heard of either is ballsy but is it smart? On one side it will quiet critics like me who have been wondering when Microsoft would get out its checkbook, but the other is it shows Microsoft is in the game. They are ready to deal. Only one thing to say about that.

It’s about freaking time.

Did this post make you go hmm?

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