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News: Microsoft to Acquire Massive

"Microsoft is said to be planning to buy in-game advertising heavyweight Massive in a deal worth $200 million to $400 million, the Wall Street Journal is reporting. According to the Journal (paid subscription required), Microsoft expects to acquire the 80-person New York City outfit in a bid to bring the technology behind much of the ads found in video games today in-house." -- CNet Update: Got a copy of WSJ, here are the highlights, verbatim: -- "Microsoft plans to announce next week an agreement to buy the New York company, said people familiar with the situation. People familiar with the matter estimated the deal to be valued at $200 to $400 million." --"Microsoft is testing its ad-brokering system, called AdCenter, in the U.S. and several markets around the world. The software giant plans to tie its brokering service with Massive's network, said people familiar with the company's plan. Microsoft's long-term goal is to have one online service that advertisers can go to buy ads across a broad range of Microsoft products. For now the Massive network will be part of a palette of advertising offerings Microsoft salesmen will offer clients, the person said." --"Advertisers spent about $56 million on advertisements in videogames last year, up from $34 million the prior year." --"So far, Massive mainly delivers ads into games for personal computers, which are commonly connected to the Internet. But a bigger opportunity lies in delivering ads to systems such as Xbox 360, Sony Corp's forthcoming Playstation 3 and other consoles that account for most of the industry's sales. [...] Massive, in fact, has quietly begun delivering ads into games for the Xbox including Ubisoft's action title, "Rainbow Six Lockdown". Robert A Guth, Nick Wingfield, "Microsoft's 'Massive' Move Into Game Ads", Wall Street Journal, April 26, 2006, p.B1



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