What The DoubleClick Buyout Loser Might Get As A Consolation Prize

Given the apparent interest in DoubleClick and the apparent bidding match for the ad network by Microsoft and Google, what other ad Networks are likely buyout candidates, especially for the losers in the Doubleclick bake-off? On Wall Street, rumors tend to focus on public ad networks like aQuantive (AQNT), ValueClick (VCLK) and 24/7 Real Media (TFSM). But there are a number of privately held companies that might make more sense as M&A deals.

Right Media has been raised as a possible buyout candidate because it has a headstart as an online ad exchange, a business that DoubleClick says it has entered. Also, Yahoo! is an investor in Right Media so it has an inside track. On the other hand, Right Media has a long way to go before it has proven itself. It would be hard for an acquirer to justify a steep multiple for a network that still needs to demonstrate that it has found its way.

Adbrite is not exactly an ad exchange but it is a marketplace and has really nailed the low end of the web advertising market. The company has also launched some new product like Adbrite video that may be of interest to buyers.

We think TribalFusion has the revenues and the technology to make them interesting to buyers but because the company has not taken any VC funding, it doesn't have the race to liquidity pressures that other firms feel.

Quigo would be an interest M&A target for a several reasons: it has a nice top shelf group of publisher partners, strong revenues, and because its essentially a private label version of Adsense, a buyer could poke Google in the eye. One problem however, is that Microsoft and Yahoo both have contextual ad programs themselves so Quigo would compete with their own products as well. A buyer would probably be someone that doesn't already do contextual advertising.

Behavioral networks. Take your pick: Tacoda, Revenue Science, Blue Lithium, Wunderloop and others. Among these, Wunderloop might be most interesting because it has a European base. So a buyer gets new technology and a better Euro foot-print.

Finally, there are ad networks that are carving out new online ad channels:
Mobile: Admob, Medio, ThirdScreen Media.

Video: Yume, Brightroll, Scanscout.

Video games: Microsoft already did a deal here with Massive as did Google when it bought Adscape.