Sunday, May 20, 2007

Who pays 85% premium???

Microsoft to Buy Online Advertising Firm AQuantive for $6B in cash. The
$66.50-per-share purchase price represents an 85 percent premium to aQuantive's
Thursday closing price of $35.87.

I just spent the last week learning about financial valuations, and I don't see how there's any way aQuantive is worth that much. aQuantive went from being a $900M company to a $6B one. Give me a break.

I don't understand how MS could balk at paying $1.65 for YouTube, and $2.1 for DoubleClick, both of which at least would have given them users and good technology that complements their existing offerings, and instead offer more than double the 2 deals combined for businesses that are even focused on technology. aQuantive is a consulting business for helping clients advertise online. My god.

SELL SELL SELL!!! Desperation!!!

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