Microsoft Corp. wants an advertising platform that spans all digital media including television and video advertising. So it
acquired Navic Networks Inc., an interactive TV ad provider. WashingtonPost.com puts the
price between $200 million and $300 million. Waltham, Mass.-based Navic deals with cable companies, such as Time Warner Cable Inc., so it is able to target ads to people based on their zip codes, allowing watchers to request more information on advertised products with the click of a button.
The
MSFT strategy also includes video game and mobile advertising. Adweek.com notes deals such as the 2006 purchase of video game ad network Massive and the 2007 buy of mobile ad network Screentonic. Adweek said buying Navic is also a way to keep pace with Google Inc., which has deals with satellite providers as part of a push to enter the estimated $80 billion TV ad market.
Microsoft has stressed that its failed bid to acquire Yahoo! Inc. was not a strategy in its own right but an attempt to accelerate a broader plan it was already pursuing. Still, MSFT is closely watching Yahoo!'s ad deal with Google, which it hopes will get turned down by regulators since Google and Yahoo! hold the Nos. 1 and 2 spots in online search.
From 1999 to 2001, Navic secured about $43 million in venture financing from Pilot House Associates, Highland Capital Partners, Himalaya Capital Ventures, Pequot Ventures and Gary Lauder of Lauder Partners.
More to come from TheDeal.com. -
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