Abstract

The case is about US-based software company Microsoft’s acquisition of aQuantive, a US-based digital marketing services and technology company. The company was acquired in 2007 but Microsoft could not derive any benefit from the acquisition and its revenues from online advertising remained stagnant. In 2012, Microsoft wrote off about US$6.2 billion, reflecting the loss in value of aQuantive. The case discusses the main reasons behind the failure of the acquisition.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand acquisition as a growth strategy
• Examine the rationale behind the acquisition
• Analyze acquisition as a strategy to face competition
• Examine the reasons for failure of acquisitions

Keywords

Microsoft, aQuantive, acquisition, writedown, display ads, search advertising, internet advertising, online advertising, failed acquisition, Avenue A| Razorfish, DRIVEpm, Atlas