Microsoft to Acquire In-Game Ad Network Massive

David Card | April 26, 2006, 08:38 AM

Good move. The Massive folks are very sharp, Microsoft's got a very complementary online game network, potential AdCenter integration is promising, and being part of a bigger network may assist in measurement and cross-media campaigns. But in-game spending is still peanuts.

Microsoft Corp. plans to acquire Massive Inc., a closely held start-up that places ads in videogames, in a deal that highlights the growing flow of advertising into nontraditional media.

Massive, a two-year-old start-up with 80 employees, is one of several companies pioneering the business of placing ads in videogames. Massive's clients include Coca-Cola Co., Honda Motor Co. and other advertisers that are gradually increasing their spending on ads in videogames. Microsoft plans to announce next week an agreement to buy the New York company, said people familiar with the situation. People familiar with the matter estimated the deal to be valued at $200 million to $400 million.