While top-tier Internet players Google Inc. [GOOG] (DoubleClick Inc), Microsoft Corp. [MSFT] (Aquantive) and Yahoo Inc. [YHOO] (Right Media and BlueLithium) were making huge deals for online advertising companies last year, AOL LLC stayed under the radar, having made its big purchase of Advertising.com back in 2004. But the Time-Warner Inc.-controlled entity on Tuesday made its second online advertising acquisition in the past three months and its fifth in the last 12 months by acquiring a company called Buy.at. Terms of the deal were not disclosed though TechCrunch reported that AOL paid around $150 million for the British-based firm.
Buy.at is an affiliate marketing network designed to drive consumers to a particular company's Web site. But unlike display advertising or pay-per-click advertising models, an advertiser only pays when a visitor actually takes action, such as making a purchase or signing up for a free trial. The company is backed by DFJ Esprit, the European arm of Draper Fisher Jurvetson, which invested 7.3 million pounds ($14.3 million) in the company in 2006.
Though Time-Warner has not suggested it is contemplating a spinout of AOL, the ongoing build-up of its advertising platform would make the property attractive if it were separated to a potential acquirer. While its competitors were shelling out billions of dollars last year, AOL kept it small and strategic, picking up contextual advertising firm Quigo, behavioral targeting firm Tacoda and mobile advertising network Third Screen Media. - David Shabelman
See Feb. 5 statement from AOL
See Nov. 7 post from Tech Confidential
See July 2007 story from TheDeal.com
For more, see TechCrunch and paidContent.org
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