Microsoft to buy online ad company

New York -- Microsoft Friday said it would buy the online advertising company aQuantive of Seattle in a deal worth about $6 billion or $66.50 a share.

The all-cash transaction, Microsoft's largest acquisition ever, represents an 85 percent premium over aQuantive's Thursday stock price of $35.87, the New York Times said.

It was seen as reflective of the importance Microsoft puts on becoming a major player in a rapidly growing market. Microsoft has struggled to compete in online advertising, especially against Google, the leader in the field.

Google recently bought DoubleClick, which Microsoft also tried to buy, for $3.1 billion.

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