The Week: City News - 24/7 Real Media sold to WPP

WPP has bought the internet advertising broker 24/7 Real Media for $649 million, a price that represents 32 times the company's forecast earnings for 2007.

The acquisition comes hot on the heels of Google's purchase of DoubleClick - on which Microsoft lost out - for $3.1 billion and Yahoo!'s buyout of Right Media. Last year, 24/7, one of DoubleClick's main US rivals, reported revenues of $200 million and a loss of $8.5million. The acquisition is expected to knock 1 per cent from WPP's earnings in the short term.