Does Microsoft-Claria Deal Have Teeth?
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Written By Reprise Media | June 30, 2005 | Share This
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In a move sure to bolster their already warm fuzzy corporate image, the New York Times reports that Microsoft is in talks to buy Claria. The adware marketer formerly known as Gator is said to be the target of acquisition by the software giant with a price tag of $500 million according to those in the know.
Microsoft execs are denying rumors of the deal, one which Techdirt calls “so ridiculous and so unlikely that it’s hard to believe it could possibly be true.”
Why would Microsoft want to acquire Claria, a move which would undoubtedly provoke the ire of privacy critics and position it as Big Brother, owning everyone’s operating system and tracking every click on it?
You could say Microsoft will use this opportunity to use their pull to do good and not evil, establishing tighter rules to protect privacy and take advantage of the growth of personalized ads. Jupiter Research Analyst Joe Wilcox says, “With so much of MSN’s revenue coming from paid search and so much corporate concern about Google, it makes sense Microsoft would look for ways to further extend its online advertising capabilities, including more personalization.”
Both sides present a good argument, but we think the first one is more compelling. Microsoft has been pretty aggressive about fighting privacy intrusions like spam. It just doesn’t make sense that they go out and acquire an adware company. Add this in to the Big Brother stuff and how much is at stake with Google and it looks more and more unlikely.
Then again, never say never…We’ll have more on this as it happens.
Topics: Investment, M&A |