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Microsoft seals $6bn aQuantive deal
'Mine! All mine!'

By Ina Fried

Published: Wednesday 15 August 2007

Microsoft has completed the largest purchase in its history, sealing its $6bn takeover of internet advertising firm aQuantive.

The software maker closed the deal on Friday, according to a filing aQuantive made yesterday with the Securities and Exchange Commission.

In the filing, aQuantive said its board has resigned, as planned, and that it has notified Nasdaq to delist its stock, with the shares now converted into the right to receive a cash payout of $66.50 per share from Microsoft. aQuantive is now a wholly owned subsidiary of Microsoft.

Microsoft is using the close of the aQuantive deal to shuffle around some of its leadership positions and duties within the online-advertising business. Yusuf Mehdi, who had been the company's chief advertising strategist, will shift to a new role, heading strategic partnerships, according to an internal memo sent by Platforms & Services Division president Kevin Johnson.

Steve Berkowitz, the former Ask.com chief executive, continues to lead Microsoft's Online Services Group, though responsibility for ad platform product management, search and display marketing, and mobile and gaming advertising are moving to Karl Siebrecht, an aQuantive unit head.

Meanwhile, aQuantive chief executive Brian McAndrews will lead a newly formed Advertiser and Publisher Solutions group. Siebrecht will report to McAndrews, while McAndrews, Berkowitz and Mehdi will all report to Johnson.

With the formalities out of the way, Microsoft will now look to try to get a boost for its ad-based efforts as it absorbs aQuantive.

Johnson said in a statement: "Today we take a significant step forward in our ability to capture share of the $40bn online-ad opportunity and the larger $600bn ad market, which is rapidly shifting to the world of online and IP-served platforms, including TV and gaming.

"The addition of aQuantive's technologies and people to the Microsoft portfolio is a core, strategic investment, and step forward in our plans to become one of the top two online-advertising platforms in the industry."

Microsoft's decision to buy aQuantive earlier this year followed a flurry of deals in the online ad business, including Google's plan to purchase DoubleClick for $3.1bn - a deal that still awaits regulatory approval. Last month, AOL said it is buying Tacoda, while Yahoo! said it will spend $680m to buy the 80 per cent of Right Media that it didn't already own.

Ina Fried writes for CNET News.com