AQuantive's ad serving technology and ad network should help Microsoft compete against Yahoo and Google.
Yahoo's stock price was up sharply early in the week, reacting to news of Microsoft's acquisition of aQuantive. After the initial shock, Yahoo's shares gave back those gains over the next few trading sessions and ended the week down 2.1%.
Microsoft has struggled to develop online advertising technology that's competitive with Google's and Yahoo's. AQuantive's ad serving technology and ad network business are expected to help. Microsoft is paying a steep premium: The transaction is valued at about $6 billion, or $66.50 per share, an 85% premium on the stock's closing price the day before.
Google shares were largely unaffected by the news; the stock ended the week flat.
The Disruptive Technology Portfolio as a whole had only a mild gain during the week, increasing 0.7%. The S&P 500 also grew only 0.5% during the same period. Eighteen DTP stocks saw increases, while 11 declined.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.