Microsoft to Acquire AdECN, Inc.

Microsoft Corp. yesterday announced it has agreed to acquire AdECN, Inc., an advertising exchange platform company based near Santa Barbara, Calif. AdECN’s technology serves as a hub where advertising networks can come together in a neutral, real-time auction marketplace for buying and selling display advertising. The deal is a key component of Microsoft’s strategy to develop a comprehensive search and display advertising platform helping advertisers and publishers to maximize return on investment (ROI) on their digital advertising investments. Financial terms of the deal were not disclosed.

Founded in 2003, AdECN brings both key technologies and significant domain expertise to the Microsoft team. Advertisers and publishers will benefit from this deal in the following ways:

• Advertisers will get access to more inventory, enabling more efficient matching of their requirements which can help increase ROI.
• Publishers will be able to increase yield – earn more money per page view – due to the higher volume of available inventory.
• Both groups will benefit from the exchange’s neutrality and transparency, enabling them to make more informed decisions about their bid and ask decisions.

The acquisition is expected to be completed in the first half of Microsoft’s fiscal year 2008. The acquisition is not expected to have a significant impact on the financial guidance previously issued by the Company. AdECN, which has approximately 30 employees, will continue to operate from its headquarters near Santa Barbara, Calif. as part of Microsoft’s Online Services Business.

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