Do you DoubleClick?

Be honest. When was the last time you thought hard about DoubleClick? Unless you're a serious internet advertising expert you've probably focused more on the glitter of MySpace, Google, and Youtube. Even the name DoubleClick is an anachronism. Only your parents or grandparents (if you're really that young don't tell me about it) "double click" on hyperlinks.

Well, turns out DoubleClick has a very important asset and it took the private equity guys to take advantage of the opportunity. So what does it mean?

I leave you with three important implications

1) Competition - in the near term other ad serving platforms will benefit from the acquisition

• I believe 24/7, aQuantive, and RightMedia will be the subject of acquisition interest as MSN, AOL, and Yahoo react

• Publishers will consider moving away from Doubleclick

2) Google Strategy

• Google now has access to the largest publishers on the web including deeper connections to MySpace and AOL

• Google can leverage Doubleclick’s display ad serving technology to make display advertising accessible to small advertisers and publishers, similar to how they leveraged paid search to make drive AdSense penetration for small publishers.

3) Valuation - Double click’s estimated 2006 revenues were $150 million to $300 million. At $3.1 B, this is a trailing twelve month revenue multiple of 10-20x.

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