Microsoft eyes $6bn takeover of advertising firm

Microsoft unveiled the largest acquisition in the software group's history with the proposed $6bn (€4.44bn) takeover of US online advertising firm aQuantive.

The software giant snapped up the group at a premium in a bid to secure a slice of the lucrative online advertising market, which is estimated to be worth $40bn (€29.6bn) and is expected to grow at a rate of 20% a year.

Microsoft paid $66.50 (€49.22bn) a share for the group - 85% more than Thursday's closing price of aQuantive shares.

The deal, which represents about 2% of Microsoft's market capitalisation, marks the latest in a series of online advertising takeovers as firms fall over themselves to tap into the sector.

British advertising and communications giant WPP bought online ad firm 24/7 Real Media, while last month saw Google buy DoubleClick and Yahoo take over Right Media.

It is understood that Microsoft had been a potential bidder for both 24/7 Real Media and DoubleClick before being trumped by WPP and Google.