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What If...: How Yahoo Almost Bought DoubleClick Before Google

19 points by krishnakrishna 15y ago

bproper 15y ago
It was 1995 and Kevin O’Connor was sitting in a basement in suburban Atlanta with Dwight Merriman trying to figure out how to build a business on this new thing called the internet. “We thought maybe car sales would be big. We figured porn would be huge, but we didn’t want to get into that.” says Mr. O’Connor, who along with Dwight Merriman and Kevin Ryan, would go on to build the DoubleClick, Silicon Alley’s biggest exit and the engine behind Google’s profits. "Eventually we settled on ad sales." What If these guys had decided to work on porn...
- deleted 15y ago
  [deleted]
mtogo 15y ago
So is doubleclick a company people look up to? I associate them with skeezy business practices, tracking people, privacy issues, and crappy advertising. I'm seriously trying to come up with one reason to like them. Maybe it's that they're successful? But so is monsanto, and i don't look up to them.
- klbarry 15y ago
  Truthfully, I think the problems with Monsanto are more hype than real. They deal with the most important issues in the world, almost - making food available.
  - bdhe 15y ago
    This is a little off topic but I have to rebut your argument. There's plenty of information and sources cited in this article [1,2,3] and I can't understand the sentiment that the problems with Monsanto are more hype than real. Also, a company dealing with the most important issue in the world doesn't absolve it of wrong-doing (be it illegal or immoral) and nor should it weaken standards that we may apply to others solving "less important issues". Both the means and the ends are important. [1] http://en.wikipedia.org/wiki/Monsanto#Environmental_and_health_record http://en.wikipedia.org/wiki/Monsanto#Environmental_and_heal... [2] http://en.wikipedia.org/wiki/Monsanto#Related_legal_actions http://en.wikipedia.org/wiki/Monsanto#Related_legal_actions [3] http://en.wikipedia.org/wiki/Monsanto#Criticism http://en.wikipedia.org/wiki/Monsanto#Criticism
presty 15y ago
"and the engine behind Google’s profits" uh? how so?
- bproper 15y ago
  Google's display ad exchange profits, powered by DoubleClick, have been growing. Display ads is exactly where Yahoo wants to be strong, and is weak. http://www.bigmouthmedia.com/live/articles/no-second-thoughts-on-doubleclick-google-reports-.asp/7562/ http://www.bigmouthmedia.com/live/articles/no-second-thought...
- clobber 15y ago
  Doubleclick is their adserving platform. Thus, the engine behind Google's profits. Ever heard of Performics, ConnectCommerce or DART?
samstave 15y ago
It sure seems to be that whomever was in charge of M&A decisions/negotians at Yahoo was an utter failure. It appears that the common thread in the downfall of Yahoo is their inability to have successfully acquired some major assets that were either scooped up by google - or went on to become stellar successes. I'd really like to know the internal dynamics that resulted in this. Although, if you heard that earnings call where Carol Bartz was totally called out - I can only imagine that the issues are intimately related to the arrogance of the exec staff.
rtrunck 15y ago
Yahoo would have shut them down a few years later anyway
americandesi333 15y ago
I don't see how they are mentioning a possibility of 'What if'. This article seems a little misleading. Its clear from reading this that the founders did not want to sell themselves to Yahoo. Also, hindsight is always 20/20 :)
pedalpete 15y ago
The title completely misses the point that it isn't what you buy, but what you do with it. Another proof that execution is the key. If Yahoo had bought DoubleClick, they likely would not have come up with AdWords, which is where the big money is for Google. On top of that, Yahoo's search technology wasn't as good as google, so people would have still left Yahoo for google.
- mrkurt 15y ago
  Google had AdWords long before they bought DoubleClick. As a matter of fact, Yahoo had adwords (they bought Overture) long before Google bought doubleclick.
- slee029 15y ago
  I completely agree about the execution aspect. At another level to me the value of acquisitions comes from understanding how you will increase the value of the product. At the consumer product level look at what P&G did with Swiffer. They knew with their marketing and distribution they saw a little diamond in the rough. I'm guessing the opportunity the people within Google saw at the time they were competing for acquisitions was the same thing. Maybe one saw a diamond in the rough while others saw the diamond as being complete and thus those differing perspectives led to different executions post-acquisition.
zengr 15y ago
Google would have created DoubleClick+

It was 1995 and Kevin O’Connor was sitting in a basement in suburban Atlanta with Dwight Merriman trying to figure out how to build a business on this new thing called the internet. “We thought maybe car sales would be big. We figured porn would be huge, but we didn’t want to get into that.” says Mr. O’Connor, who along with Dwight Merriman and Kevin Ryan, would go on to build the DoubleClick, Silicon Alley’s biggest exit and the engine behind Google’s profits. "Eventually we settled on ad sales." What If these guys had decided to work on porn...

deleted 15y ago
[deleted]

mtogo 15y ago

So is doubleclick a company people look up to? I associate them with skeezy business practices, tracking people, privacy issues, and crappy advertising. I'm seriously trying to come up with one reason to like them. Maybe it's that they're successful? But so is monsanto, and i don't look up to them.

klbarry 15y ago
Truthfully, I think the problems with Monsanto are more hype than real. They deal with the most important issues in the world, almost - making food available.
- bdhe 15y ago
  This is a little off topic but I have to rebut your argument. There's plenty of information and sources cited in this article [1,2,3] and I can't understand the sentiment that the problems with Monsanto are more hype than real. Also, a company dealing with the most important issue in the world doesn't absolve it of wrong-doing (be it illegal or immoral) and nor should it weaken standards that we may apply to others solving "less important issues". Both the means and the ends are important. [1] http://en.wikipedia.org/wiki/Monsanto#Environmental_and_health_record http://en.wikipedia.org/wiki/Monsanto#Environmental_and_heal... [2] http://en.wikipedia.org/wiki/Monsanto#Related_legal_actions http://en.wikipedia.org/wiki/Monsanto#Related_legal_actions [3] http://en.wikipedia.org/wiki/Monsanto#Criticism http://en.wikipedia.org/wiki/Monsanto#Criticism

presty 15y ago

"and the engine behind Google’s profits" uh? how so?

bproper 15y ago
Google's display ad exchange profits, powered by DoubleClick, have been growing. Display ads is exactly where Yahoo wants to be strong, and is weak. http://www.bigmouthmedia.com/live/articles/no-second-thoughts-on-doubleclick-google-reports-.asp/7562/ http://www.bigmouthmedia.com/live/articles/no-second-thought...
clobber 15y ago
Doubleclick is their adserving platform. Thus, the engine behind Google's profits. Ever heard of Performics, ConnectCommerce or DART?

samstave 15y ago

It sure seems to be that whomever was in charge of M&A decisions/negotians at Yahoo was an utter failure. It appears that the common thread in the downfall of Yahoo is their inability to have successfully acquired some major assets that were either scooped up by google - or went on to become stellar successes. I'd really like to know the internal dynamics that resulted in this. Although, if you heard that earnings call where Carol Bartz was totally called out - I can only imagine that the issues are intimately related to the arrogance of the exec staff.

rtrunck 15y ago

Yahoo would have shut them down a few years later anyway

americandesi333 15y ago

I don't see how they are mentioning a possibility of 'What if'. This article seems a little misleading. Its clear from reading this that the founders did not want to sell themselves to Yahoo. Also, hindsight is always 20/20 :)

pedalpete 15y ago

The title completely misses the point that it isn't what you buy, but what you do with it. Another proof that execution is the key. If Yahoo had bought DoubleClick, they likely would not have come up with AdWords, which is where the big money is for Google. On top of that, Yahoo's search technology wasn't as good as google, so people would have still left Yahoo for google.

mrkurt 15y ago
Google had AdWords long before they bought DoubleClick. As a matter of fact, Yahoo had adwords (they bought Overture) long before Google bought doubleclick.
slee029 15y ago
I completely agree about the execution aspect. At another level to me the value of acquisitions comes from understanding how you will increase the value of the product. At the consumer product level look at what P&G did with Swiffer. They knew with their marketing and distribution they saw a little diamond in the rough. I'm guessing the opportunity the people within Google saw at the time they were competing for acquisitions was the same thing. Maybe one saw a diamond in the rough while others saw the diamond as being complete and thus those differing perspectives led to different executions post-acquisition.

zengr 15y ago

Google would have created DoubleClick+