May 2007
1. News
2. Training
3. Product Updates
4. Quote of the Month
5. Griff's Corner - Techie Tips
6. 15 Seconds of Fame
Microsoft buys ad firm for $6bn
Microsoft is paying $6bn (£3bn) to buy digital marketing firm Aquantive in its biggest ever acquisition.
The all-cash takeover will allow Microsoft to expand into the highly lucrative internet advertising market, that Google and Yahoo have targeted.
Aquantive advises agencies and website publishers on putting adverts online, connecting buyers and sellers.
The $66.50 per share offer is 85% higher than Aquantive's Thursday closing price of $35.87.
'New level'
"This deal takes our advertising business to a new level," said Kevin Johnson, head of Microsoft's platforms and services division.
"We are committed to earn a bigger slice of the £40bn pie that's growing."
Microsoft is the latest technology firm to pounce on the shrinking independent online advertising sector.
Last month, search engine giant Google agreed to buy DoubleClick for $3.1bn, while Yahoo snatched the 80% of Right Media Exchange it did not already own for $680m.
Price justified?
Microsoft justified the expensive price tag - which represents 2% of its market value - by arguing the complementary technology of Aquantive was worth it.
But analysts are sceptical.
"There had to have been some desperation for Microsoft to pay the price that it did," said Morningstar analyst Toan Tran.
"Sometimes, I am worried that Microsoft has Google-tunnel vision. It's so worried what Google is doing that it becomes way too reactionary," he added.
Aquantive, which has about 2,600 employees, will continue to operate from Seattle as part of Microsoft's online operations.
It will help the software giant broaden the scope of services its MSN consumer internet unit can offer.
The deal is expected to be completed in the first half of 2008, subject to regulation.
Shares in Aquantive shot up 78% to $63.79 in Friday trading on the technology-dominated Nasdaq index, while Microsoft shares fell 0.5% to $30.83.
- BBC News
Training
Interactive are proud to tell you that we now offer specialist training on both Pegasus and Sage. We have qualified trainers to help you maximise the way you use your account system, whether you are an existing customer of ours, or a business that has one of these systems and is looking for a little help.
Please get in touch for more info at sales@interactiveit.com.
HM Revenue & Custom (HMRC) – Reverse Charge VAT
HMRC announced on 20 March that it would be introducing new legislation for the VAT treatment of mobile phones and computer chips. Businesses who buy or sell computer chips or ‘Pay as you go’ mobile phones, and the invoice value exceeds £5,000, will need to comply with the new legislation.
The new legislation is effective from 1 June this year until April 2009. At that time, the UK government will need to apply to the EU to extend or amend the regulations.
Read more at www.pegasus.co.uk
"The best minds are not in government. If any were, business would hire them away."
Ronald Reagan (1911 - 2004)
A bit of a light-heated one this month… Remember that a computer is only a tool: it cannot think for you. If it does something "stupid", it's because you told it to.
If you think you may need some help then speak to us about our Interactive support on 0121 2602600.
A warm, Interactive welcome to Mark Rigby - a new addition to the technical support team. Mark has a strong background in IT support and is already proving to be a very valuable (although somewhat camera shy) member of the team. Welcome aboard Mark!
