Aquantive Inc

aQuantive, Inc. was a Seattle-based global digital marketing company that provided advertising services including search advertising and content and media networks, together with ad-serving technology platforms and tools. It was publicly traded on NASDAQ under the symbol AQNT and operated primarily in the United States.

The company ran three reporting segments. Digital Marketing Services housed the agency business Avenue A | Razorfish and generated $267.6 million of revenue in 2006. Digital Marketing Technologies centered on the Atlas ad-serving platform and generated $122.4 million in 2006. Digital Performance Media, which included DRIVEpm, generated $52.3 million in 2006. Total 2006 revenue was $442.2 million, up 43 percent year over year, with net income of $54.0 million and adjusted EBITDA of $124.2 million.

Microsoft acquired aQuantive in an all-cash transaction valued at roughly $6 billion, completing the deal on August 13, 2007. At the time it was the largest acquisition in Microsoft's history. aQuantive's assets — Atlas, DRIVEpm and Avenue A | Razorfish — became part of Microsoft's new Advertiser and Publisher Solutions Group, run by former aQuantive CEO Brian McAndrews, with employees remaining in downtown Seattle.

Founding story

aQuantive was founded in 1997. Mike Galgon was a co-founder of the company.

Business model

aQuantive combined a fee-based digital agency business (Avenue A | Razorfish, reported as Digital Marketing Services) with licensed/served advertising technology (Atlas ad serving, reported as Digital Marketing Technologies) and media arbitrage and performance media buying (DRIVEpm, reported as Digital Performance Media). The three segments were reported separately, with corporate expenses managed centrally.

Revenue came from digital marketing services fees, digital marketing technology (ad serving) and digital performance media, reported as three segments totaling $442.2 million in 2006.

Traction

2006 revenue reached $442.2 million (up 43 percent, 33 percent organic) with net income of $54.0 million and adjusted EBITDA of $124.2 million; Q4 2006 revenue was $133.4 million, up 53 percent year over year. Management guided to 2007 revenue of $550-570 million and net income of $59-64 million. The company had about 2,600 employees as of May 2007.

Latest developments

Microsoft completed its acquisition of aQuantive on August 13, 2007. aQuantive's platforms and agency were placed in Microsoft's Advertiser and Publisher Solutions Group under Brian McAndrews, who reported to Kevin Johnson, president of Microsoft's Platforms & Services Division; co-founder Mike Galgon became chief advertising strategist. The final SEC filings listed for the entity are an August 2007 10-Q and listing-status disclosures.