By: IT News BlogAn article in ComputerWorld reports that Google has agreed to pay US$3.1 billion in cash for DoubeClick Inc., an acquisition designed to strengthen Google's status as an online advertising powerhouse. The story reports rumours Microsoft had been interested in a US$2 billion acquisition, and speculates a bidding war may have developed.

On the blogs, Eric Bangeman calls it a big win for Google and says Microsoft will now have to build its own service from scratch or acquire a smaller player, and Robert Scoble says Google is successfully “building a moat” around its search engine business.

Not all are in agreement however. Mary Jo thinks Microsoft may have been bluffing to drive the price up on Google, while Steve Fox worries a budding Google monopoly could spell trouble for Web site developers and Web consumers.

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Jim Love, Chief Content Officer, IT World Canada
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