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On 18 May 2007, Microsoft announced it will acquire aQuantive for $66.50 per share in an all-cash transaction valued at approximately $6 billion. This represents the biggest acquisition in Microsoft's history. 
aQuantive, a holding company, owns three assets, each of which presents a distinct opportunity for Microsoft:
- Atlas, which competes directly with DoubleClick, gives Microsoft a solid footprint in the ad server world.
- DRIVEpm, the No. 8 ad network according to comScore, gives Microsoft much-needed "long-tail" inventory for its online display media business.
- AvenueA/Razorfish, the least intuitively well-matched asset, gives Microsoft a new brand in services, and more important, a creative platform through which to promote Silverlight, its new rich-media and video plug-in.
Though this acquisition is expensive, it is a key move for Microsoft that puts it right back in the game against Google and Yahoo, whose recent bids for DoubleClick and Right Media, respectively, have strengthened their dominance in the burgeoning online media space. The fact that Microsoft paid a premium is indicative of how important this is to Microsoft, especially given other recent acquisitions (DoubleClick and YouTube) and deals (AOL stake and MySpace advertising) where it was outbid. Microsoft now faces the challenges of integrating Atlas and DRIVEpm into its adCenter platform, and reassuring Razorfish clients that their agency remains neutral, operationally independent and dedicated to putting its clients’ interests first. A good example will be how it will balance the need for independence with the opportunity to promote Silverlight over Adobe’s Flash (see "Findings: Microsoft Must Optimize Its Assets to Launch Silverlight"). Most of the revenue generated by aQuantive is through AvenueA/Razorfish. While clearly an asset, the move marks a significant change in strategy, as Microsoft has thus far avoided purchasing and running any businesses that are primarily professional services in nature. Microsoft has also rejected suggestions that it might spin off the services business, although global advertising companies have recently demonstrated strong demand for such acquisitions. This is significant because:
- It shows Microsoft's willingness to spend to be a major player in advertising.
- It represents a change in position with regard to professional-services businesses.
- It shows leadership in Web development as a result of the capabilities of AvenueA/Razorfish.
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