Guess Microsoft just didn't want 24/7 Real Media after all.
24/7 Real Media said in a statement that it sold out to advertising giant WPP Group for $649 million today. A few takeaways on this deal.
- Online advertising plays are being gobbled up quickly;
- The price paid for 24/7 Real Media was a far cry from the whisper numbers of $1 billion;
- And you can't believe everything you read in the newspaper--especially the New York Post. If you flash back to May 1, the New York Post reported that Microsoft was looking to take out 24/7 Media for $1 billion.
Given the actual selling price of 24/7 Real Media it appears Microsoft wasn't all that interested. Surely, the folks in Redmond could have scrounged up $700 million to top WPP. Oh yeah, Microsoft must have been preoccupied with buying Yahoo--another Post whopper.
The big picture: Online advertising companies are going going gone, but there are still a few around--ValueClick for example.
As for 24/7 Real Media it gets a home within the WPP, which really needs to figure out the Internet if it's going to keep clients. 24/7 Real Media will give WPP the technology and talent to compete more effectively with Internet giants.
WPP will pay $11.75 a share for 24/7 Real Media. WPP added that the 24/7 Real Media management--CEO David J. Moore, COO/CFO Jonathan Hsu and CTO Oleg Vishnepolsky--will continue in their current roles developing the company and WPP's digital group.