Microsoft signaled to the markets that it’s going after the TV ad business with the announcement today that it has acquired Navic Networks. Terms of the deal were not disclosed.
Navic Networks’ interactive television technology is used by cable systems across the country to deliver targeted and interactive features and ads. Microsoft said it will use the technology to deliver targeted TV ads.
The acquisition gives Microsoft a tool to compete with Google in the TV ad business. Google introduced Google TV Ads in the past year in partnership with Echostar to deliver more targeted ads on TV.
The deal comes as TV faces more pressure from the Web. Advertisers are experimenting more with Web video because of the interactivity made possible on the Internet.
TechCrunch reported that the deal could be worth between $200 million and $300 million.