• The New York Times, Wednesday, April 4, 2007 10:45 AM

DoubleClick may have just become more expensive. The ad-serving giant is announcing today that it's setting up a Nasdaq-like exchange for buying and selling Web ads. The new service calls for advertisers to bid against one another for inventory on participating DoubleClick partner sites. And it could make the company a more attractive acquisition target. Hellman & Friedman, the private equity firm that owns the technology provider, hired Morgan Stanley to explore a possible sale.

DoubleClick is one of the Web's biggest ad-servers. The ad exchange would bring publishers and advertisers together into a network where advertisers can participate in eBay-style auctions that display competitors' bids. David Rosenblatt, the company's chief executive, said the new service is crucial to its growth plan, potentially becoming the centerpiece of its operations in the next five years.

For publishers, the service is designed to help them sell ads at the maximum price. You wonder whether advertisers will think this is a pure-play for publishers, as the cost of premium ads will likely go up. DoubleClick has always aimed to serve both equally. There is high demand and little supply for such services, which would likely increase the company's selling value. Look for eBay to enter the DoubleClick bidding war.

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