Google Buys DoubleClick - Relationships: A Two-Edged Sword
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It's true that many of Google's advertisers are also familiar with DoubleClick. According to Google CEO Eric Schmidt, many of them use DoubleClick's software for buying, selling and tracking digital advertising. But not all of them will be entirely comfortable with Google in control of the ad serving company.
DoubleClick has more than 1,500 customers. They include AOL and other companies that might not be happy about Google having access to their data. And there could be issues concerning conflict of interest. As the New York Times pointed out when the deal was announced, "If DoubleClick's existing clients start to feel that Google is using DoubleClick's relationships to further its own ad network, some Web publishers or advertisers might jump ship." That would decrease the value of the purchase.
But perhaps it wouldn't decrease it by all that much. Some have commented that keeping DoubleClick out of the hands of Microsoft is worth billions to Google all by itself. Since it's already trying to compete with Yahoo in the display advertising arena, keeping a potentially powerful competitor out of the field, or at least delaying its entry, is worth quite a bit.
And then there are the synergies to consider. According to Charlene Li, a Forrester analyst, Google "can leverage the relationships they have between display, search and transactions (with Google Checkout) better than anyone else can, and that justifies the premium price they paid. In that way it was a 'must-buy' for Google."
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