Weeks after Google bought Doubleclick, traditional ad giant WPP, probably very fearful of the increasing power and clout of Google, and probably equally fearful of simply being left behind as the advertising world migrates to digital, plunks down $649 Million dollars for 247RealMedia.
This equates to $11.75 a share for TFSM a stock that’s been floating between $7-10 for a year… or a 30% premium to the prior closing price.
We utilize 247RealMedia’s ad serving product called OpenAdStream. For now it’s business as usual. The WPP acquisition may ultimately be a very good thing, as WPP is the number two player in the advertising market, and with some luck they will invest heavily in taking the OAS product to the next level.