DoubleClick Acquisition Finalizes After EU Approval; Potential Layoffs On The Way
“As with most mergers, there may be reductions in headcount. We expect these to take place in the U.S. and possibly in other regions as well,” wroteÂ CEO of Google Eric Schmidt on the Official Google Blog.Â “We know that DoubleClick is built on the strength of its people. For this reason weâ€™ll strive to minimize the impact of this process on all of our clients and employees.”
The European Union regulators have given Google the thumbs up.Â Google can finalize their acquisition of DoubleClick Inc.Â The Mountain View, Calif.-based search engine company acquired Double close to a year ago for $3.1 billion.Â Through this acquisition, Google will once again put Yahoo! and Microsoft in their sights.Â Over the past year, Yahoo! and Microsoft have picked several digital advertising companies of their own.
According to analysts at J.P. Morgan, search advertising will be valued at $28.6 billion by 2010.
While regulators were waiting to approve the acquisition, Google did not have the opportunity to create a plan on integrating DoubleClick with the search engine.Â Over the next few weeks, Google will be taking DoubleClick employees and aligning them within various Google divisions.
Hellman & Friedman along with JMI Equity previously invested $300 million for stake in DoubleClick.Â After the acquisition, Hellman & Friedman collected $2.5 billion.
[Information Source: WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry