Microsoft reportedly eyes Web ad firm
Shares of 24/7 Real Media soar 39% in pre-market trading after report that Microsoft may bid $1B for firm.
NEW YORK (CNNMoney.com) -- A report that Microsoft might be interested in 24/7 Real Media sent shares of the Internet advertising firm soaring in pre-market trading Tuesday.
Analysts surveyed by Thomson Financial have a median target price of $11 for the firm, or which would give it a market value of $561 million.
Shares of 24/7 Media (Charts) gained $3.85, or 39 percent, in pre-market trading Tuesday. Shares had already shot up 24 percent in trading Wednesday and Thursday last week on a rumor that advertising firm WPP Group (Charts) was interested in the company. But shares then retreated 5 percent through the close of trading Monday.
Microsoft reportedly was interested in buying online ad firm DoubleClick, but competitor Google (Charts, Fortune 500) reached a deal on April 13 to buy that firm for $3.1 billion from private equity firm Hellman & Friedman, which had taken it private two years ago in a $1.1 billion deal.
CNNMoney.com editor at large Paul LaMonica had suggested in his Media Biz blog on Thursday that Microsoft should look at 24/7 Media or other DoubleClick competitors such as ValueClick or aQuantive.