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Google Finalizes $3.1 Billion DoubleClick Acquisition

added by Michael on 11 Mar 2008

Information Week covers Google's acquisition of DoubleClick.

Google (NSDQ: GOOG) on Tuesday received approval from the European Commission and quickly announced the completion of its acquisition of Internet advertising company DoubleClick.

The decision ends almost a year of uncertainty surrounding the $3.1 billion deal, which is opposed by privacy and consumer groups, not to mention Microsoft (NSDQ: MSFT). It also appears to have restored some measure of investor confidence. As of 3 pm EST on Tuesday, Google's stock had risen almost 5%, up from near its 52-week low of $413 per share on Monday.

"The Commission's in-depth market investigation found that Google and DoubleClick were not exerting major competitive constraints on each other's activities and could, therefore, not be considered as competitors at the moment," the European Commission said in a statement. "Even if DoubleClick could become an effective competitor in online intermediation services, it is likely that other competitors would continue to exert sufficient competitive pressure after the merger. The Commission therefore concluded that the elimination of DoubleClick as a potential competitor would not have an adverse impact on competition in the online intermediation advertising services market."

In a blog post, Google CEO Eric Schmidt welcomed the decision and expressed excitement about finally being able to bring the benefits of the combined companies to market.

"As the combination of Google and DoubleClick delivers better, more relevant display ads, we're also looking forward to delivering an improved online experience to users," said Schmidt. "Because user trust is paramount to the success of our business, users will continue to benefit from our commitment to protecting user privacy following this acquisition. And our scale and infrastructure mean that users will also be spending less time waiting for Web pages to load."