AOL is reported to be closing in on a deal to acquire Israel-based contextual ad company Quigo for $300 million as part of an overall effort to increase its online advertising business.
Quigo’s products for internet advertising include AdSonar, which competes with Google’s AdSense in placing links on search results, and FeedPoint, which offers advertisements based on user’s search on the internet.
The deal is expected to become an extension of the alliance between Time Warner and Quigo made in June 2007. Under the terms of that deal, Quigo will provide a customized version of its pay-per-click advertising service for Time’s web properties. Time Warner estimates the deal will bring in $100 million in revenue over the next three years.
In a similar deal in April 2007, Google acquired internet advertising solutions company DoubleClick for $3.1 billion to improve its capability of placing targeted banner ads. In May 2007, Microsoft also acquired a digital media company, aQuantive for $6 billion to enhance its web advertising platform.
This will be AOL’s second acquisition in Israel as it acquired a subscription based service company, Relegence in November 2006.
Source: ComputerWire daily updates