Back from vacation after disconnecting myself from the real world--only to discover that reality is becoming more bizarre than ever.
So it is that Friday's news wires bring word that Microsoft is buying a company called Aquantive for 6 billion--that's right, 6 BILLION--dollars. Congrats to any Aquantive shareholders out there who today are celebrating the 85 percent premium Microsoft agreed to pay. But is it just me or is this price borderline insane?
No doubt Microsoft can afford the price. At last look, it had about $25 billion to spend on any shopping spree. So have at it, fellas.
Yet it was only less than a month ago that a Citigroup analyst doused speculation that Aquantive should command a big premium. So what changed?
What with the stock market at an all-time high, it's tempting to reduce this to bubble-mania. But it also reflects Microsoft's frustration at its inability to slow down Google. What with a $20 billion online advertising market at stake, Steve Ballmer figures it's worth paying a steep price if Aquantive can provide a jump-start.
Will it work? Will it close the gap with Google, which seemingly can do no wrong. Microsoft's not a conglomerate that lets independent entities go their own way. So tomorrow's Aquantive will look a lot different as part of Microsoft's online services division than it did as a standalone company marching to its own tune.
Meanwhile, Google's juggernaut keeps chugging along.