Microsoft to buy Rapt Inc to boost its online advertising business
15 Mar 2008
Microsoft Corporation plans to buy online ad technology firm Rapt Inc, which helps web publishers and advertisers to manage their online advertising. Microsoft expects the acquisition to add momentum to its publisher tools business.
The financial terms of the deal was not disclosed.
Microsoft plans to add Rapt's web-based software programme into its Atlas Publisher Suite, a set of tools used by web sites to manage advertising. Microsoft gained Atlas tools as part of its $6 billion acquisition of aQuantive last year.
The announcement comes just a day after Google announced its first ad product following the acquisition of online ad services company DoubleClick,.
Microsoft expects the online advertising market to reach $80 billion by 2010. The acquisition is seen as an attempt to improve the company's ability to compete against Google and Yahoo as a leading provider of online advertising.
In 2007 Microsoft acquired Screen Tonic, a European manufacturer of software designed to connect online advertisers with users of mobile phones and other digital devices, followed by a partnership with Ask.com under which Microsoft's customers for paid search programmes can see their listings on sites operated by Ask.com and its partners.
The company has also made an unsolicited $40-billion bid to buy Yahoo Inc, which it hopes will help it catch up with Google in the search ad business.
Founded in 1998, Rapt is headquartered in San Francisco. The company's client list include CNET Networks, Dow Jones & Company, Expedia, Fox Interactive Media, Microsoft, MTV Networks, NBC Universal, The New York Times Company, Reuters, USA TODAY, Yahoo!, and others.
