Microsoft Completes Acquisition of aQuantive, Creates Advertiser and Publisher Solutions Group

Aug 14, 2007

Microsoft Corp. has completed its acquisition of aQuantive Inc. The acquisition is intended to help Microsoft deliver on its previously outlined goal to provide the advertising industry with a platform across devices and media that will enhance the experiences of users, advertisers, and publishers.

Microsoft also created the Advertiser and Publisher Solutions (APS) Group. This new business group will be responsible for building Microsoft’s monetization engine to serve the advertiser and publisher community. The APS team will assume responsibility for building and marketing all ad platforms, including Atlas, DRIVEpm, MSNDR and Microsoft AdCenter, along with emerging media types such as in-game and mobile ads, and the agency arm Avenue A | Razorfish. The APS group will be run by Brian McAndrews, CEO of aQuantive, who will report directly to Kevin Johnson, president of Microsoft’s Platforms & Services Division (PSD).

Upon close of Microsoft’s acquisition of AdECN, CEO Bill Urschel and his team will report into Alex Gounares, corporate vice president, adCenter and Commerce, part of Satya Nadella’s Search & Advertising Platform group. AdECN will maintain its offices near Santa Barbara, Calif. aQuantive’s employees will continue to be located in their downtown Seattle offices.

The aQuantive acquisition, excluding transaction costs, is not expected to have a significant impact on previously issued fiscal 2008 guidance for operating income and earnings per share. Microsoft will provide updated financial guidance on its first-quarter earnings call scheduled for Oct. 25, 2007.