Google Acquired DoubleClick, Shareholders applaud
Google won approval from the European Commission of its planned acquisition of DoubleClick Inc and promptly closed the deal, sending its stock 6 percent higher.
This move will allow the Web search and advertising leader to accelerate its passage into the market for corporate banner and display ads and fulfill an expansion plan that has been on hold for a year.
The EU approval of the $3.1 billion DoubleClick deal came despite objections
from rivals and privacy advocates and followed an in-depth investigation by
European competition officials. The merger, announced a year ago, was given a
go-ahead by U.S. antitrust authorities late last year.
Software giant Microsoft , Internet rival Yahoo and AT&T Inc, the largest U.S.
telephone company, had pressed regulators to block the Google-DoubleClick deal,
arguing it gave Google too much power in online ad markets.
The European Commission, the European Union's executive arm, said Google and
DoubleClick operate in different parts of the online advertising world and their
deal was not a marriage of rivals.
Google says it has been limited by law from making detailed integration plans
with DoubleClick, but by early April it expects to have a plan to cut an
unspecified number of jobs in DoubleClick's U.S. operations and, potentially,
overseas.
"As with most mergers, there may be reductions in headcount. We expect these to
take place in the U.S. and possibly in other regions as well," Google said in a
statement.
DoubleClick has 1,500 employees. Google had 16,805 employees at the end of 2007.
DoubleClick has 1,500 employees. Google had 16,805 employees at the end of 2007.
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