AOL said Wednesday it would buy New York advertising company Quigo, its fourth acquisition of an advertising business this year.
The purchase would cost about $340 million, according to a source familiar with the deal.
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AOL is based in Dulles but announced plans in September to move its headquarters to New York and focus on its advertising business.
The company has been consolidating its advertising acquisitions, which include Boston-based Third Screen Media, German company Adtech AG and Tacoda of New York, under a subsidiary called Platform A.
“This is one of the final pieces to fill out the puzzle of our advertising platform,” AOL spokeswoman Anne Bentley said.
Like Google, Quigo’s technology allows companies to insert advertising that is tailored to a particular Web page’s content. The company has a network of about 3,000 advertisers.
“The theme here is that AOL is picking off the premier guys,” said Stan Sandberg, a principal with Gridley and Co., an investment bank that focuses on Internet services and interactive marketing.
Quigo has received attention in recent months by snagging such key clients as ESPN and CNN over tough competition like Google, Sandberg said.
“It’s becoming clear to the world that AOL is looking to take leadership in the online ad business, and it’s no longer just a Google game or a Yahoo game,” he added.
The purchase announcement came the same day as its parent company, Time Warner, announced third-quarter profits of $1.09 billion, a 53 percent drop from a year ago.
AOL posted a 23 percent drop, as higher advertisingrevenue — 13 percent growth — didn’t offset subscription decreases. The Internet service provider lost another 851,000 customers, ending the quarter with 10.1 million U.S. Internet access customers.
