Microsoft is paying an eye-popping $66.50 a share, or $6 billion for aQuantive, the 10-year old parent of interactive advertising agency Avenue A | Razorfish. That is 85% above aQuantive’s closing price Thursday, which already was up 45% this year. To put the purchase price in perspective, it’s more than 45 times aQuantive’s cash flow, which totaled $130 million last year, according to Capital IQ. (After taking cash on its books into consideration, aQuantive has no debt.) If Microsoft itself sported the same valuation, it would be valued at $1 trillion.
Deal Journal – WSJ.com : Microsoft’s aQuantive Leap
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Joi Podgorny 