AOL Offers $900 Mln for TradeDoubler

By Geoff Duncan Published January 15, 2007

AOL, Inc. famously still a unit of Time Warner, announced today it has made a $900 million cash bid to acquire TradeDoubler. If the deal goes through, the move would help make AOL a major force in the European online advertising market. TradeDoubler had sales of €115 million in 2005, and employes over 300 people in operations spanning 18 European countries.

"This investment provides a unique opportunity for both TradeDoubler and us to capitalize on the continued rapid growth in online advertising and e-commerce in Europe," said Randy Falco, AOL’s chairman and CEO, in a statement. "We believe that TradeDoubler will be complementary with our other businesses, especially with our third-party advertising network—Advertising.com."

AOL acquired Advertising.com in 2004.

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The move underscores the necessity of online advertising to AOL’s risky transition from a "walled-garden" online service based on paid subscriptions to a free Internet-based content and service provider largely supported by advertising revenue. AOL says it would like to combine Advertising.com and TradeDoubler to offer potential advertisers a broader range of marketing solutions in both Europe and the United States.

Former Digital Trends Contributor

Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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