Microsoft’s Next Purchase?

Tuesday, 9 Oct 2007 | 11:36 AM ET

Back in April, on the heels of Google’s buyout of DoubleClick, Cramer predicted that either ValueClick or aQuantive would be the next acquisition for a tech company trying to keep pace with the search giant.

Sure enough, less than two months later, Microsoft swept in and grabbed aQuantive at an 85% premium. But Cramer said he doesn’t think Microsoft is done yet, and the industry bellwether might have its eye on the orphan ValueClick .

Value Added
Thinking up ways to beat this market, with Mad Money host Jim Cramer.

“Microsoft is hungry, and ValueClick could be its next, very pricey meal,” Cramer said.

Apparently, before the Microsoft-aQuantive deal, aQuantive was in merger talks with ValueClick. Now that former aQuantive CEO Brian McAndrews is a key player in Microsoft’s online ad business, there’s a chance he’ll want to take another look at ValueClick, Cramer said.

So what does that mean for investors? According to Cramer, it could be an 86% premium. Using the aQuantive and DoubleClick deals as a model, Cramer figures ValueClick could fetch just under $60 a share on the high end and $34 a share on the low end. With the stock at about $25, that’s a premium of 137% or 35%, respectively. The average between the two is $47, or 86%.

Even if the buyout never happens – and that is a possibility – ValueClick is still in the sweet spot of a thriving industry: internet advertising. So, “you still own a good stock,” Cramer said.

The bottom line? Cramer gives this stock a "triple buy."

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.