Investing in the Internet: Google Buys DoubleClick... Who's Next?
By Ian L. Cooper
Snuffing Microsoft after weeks of bid wars, Google emerged victorious in its fight to buy DoubleClick (the middleman between advertisers and online publications) for $3.1 billion in cash. But with DoubleClick now out of the picture, who stands to benefit now?
aQuantive (AQNT), ValueClick (VCLK), and 24/7 Real Media (TFSM) are the ones to keep on watch as possible takeover targets for Google and Yahoo, as they compete with Google’s more diversified advertising model.
With regards to aQuantive (AQNT), the $2.5 billion company could easily tack on $5 to $8 a share, according to reports, what with Google paying 25 to 31 times EBITDA for DoubleClick. aQuantive makes the software that allows marketers to target ad campaigns on Web sites.
ValueClick (VCLK), a $3 billion company, provides targeted ad space to about 6,000 advertisers and agencies. And 24/7 Media (TFSM), a $495 million global digital marketing company, could also easily fetch buyout interest from the Internet behemoths.
Keep all three on radar. We wouldn’t be surprised to see near-term bid interest from Google and Yahoo.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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