Google-DoubleClick Merger

Reuters reports that “Google - DoubleClick Merger Seen Winning Approval” (via DealBook).  It appears that Reuters interviewed 4 “antitrust experts” and three thought the FTC would approve the deal; the fourth thought it was too close to call (the FTC, of course, refused to comment).  Let’s meet our four experts; first up is Mark Kovner:

Mark Kovner, an antitrust lawyer with Kirkland & Ellis, said the Federal Trade Commission was not inclined to block vertical mergers, which are usually the combination of two companies producing different goods or services for the same product.

“The agencies have been looking at head-to-head competition,” Kovner said, adding that putting search engine advertising into a separate market “seems like a jury-rigged market definition. To the outside observer it seems like advertising is a big wide open field.”

Next is Steve Sunshine:

Steven Sunshine of Skadden Arps Slate Meagher and Flom LLP said privacy concerns about the merger were irrelevant.

“What we’re really talking about is Internet advertising. The companies are in a slightly different space. The field is too open, and there are too many competitors,” Sunshine said.

“It is being reviewed by an administration that has been less aggressive than past administrations in challenging mergers,” he added.

Third is Bertt Foer:

Bert Foer of the American Antitrust Institute said he thought the Google-Doubleclick merger was too close to call.

“What it has in common with some of the recent cases is the market definition,” Foer said. “In the XM-Sirius case and the Whole Foods case, as in most cases, it’s a problem of defining the market. It’s a very dynamic market.”

“The market is clearly evolving,” he added. “The question is, do you interfere now or leave it alone?”

Finally, Steven Axinn:

The Google-DoubleClick deal is unlikely to trigger higher online ad prices, said antitrust lawyer Steven Axinn of Axinn Veltrop & Harkrider.

“It is hard to make the case persuasively that the market for Internet advertising is all that different from electronic,” he said. “I do not think it would be responsible to stop that transaction.”

The Google-Doubleclick merger may get closer scrutiny in Europe, where EU officials must also approve it, Kovner said.

“In the EU, vertical issues have historically gotten more play. And size seems to matter more in the EU,” Kovner said.

There you go: three out of four experts think the FTC will approve the merger.

One Response to “Google-DoubleClick Merger”

  1. Katie Says:

    Will we be seeing a trend here as far as deals going through that may not have before due to antitrust regulations? NewsVisual did an article based on some WSJ predictions of who may follow in the footsteps of Google (see article: http://www.newsvisual.com/newsvisual/2007/10/possible-deals.html ). I would be interested to know if any that they mentioned (Barnes and Noble/Borders, Motorola/Nortel) would be able to form similar deals.

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