Unless you live under a rock, you’ve probably have heard that Google announced last Friday (the 13th) plans to acquire DoubleClick. The price, a whopping $3.1 billion, is 10 times the multiple of DoubleClick’s revenue and is almost double the price Google paid for YouTube. Also, just two days before the deal was announced the whisper number on Wall Street for a purchase of DoubleClick was only $2 billion.

At the Web 2.0 Expo in San Francisco on Tuesday, John Battelle, chairman of Federate Media chairman and author of the book The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed our Culture, interviewed Google CEO Eric Schmidt. And here’s what Schmidt had to say about the deal price to acquire DoubleClick.

“The math made sense,” Schmidt told the Web 2.0 Expo keynote attendees.

He also went on to say that the ad business is both “art and science’ and that Google’s automated technology can “provide the science part.”

Regarding Performics and whether or not Google has plans to sell that business, Schmidt said, “We have not made a decision. It’s an important part of the business and we just haven’t made that decision.”

Interestingly enough Battelle called Performics “an SEO and SEM company” when describing them to the audience. Because he has an authoritative voice within the Web 2.0 community I fear that most will simply believe that description without ever attempting to learn more about Performics. That’s a shame.

Check out Cnet’s video of the interview and listen to the audio from the call with analysts and press on Friday.

Anyway, I spoke with a lot of people about this deal and one of my favorite people in the industry, a PPC guy (who is whip smart but doesn’t like to be in the public eye), gave me his take on the deal. He wanted to remain anonymous but I couldn’t resist sharing his analogy, which is humorous and spot on.

“With this acquisition, Google will be growing well beyond the boundaries where the stock and Internet pundits said they’d be most likely to sit and mature - making this analogous to a new land grab, like our historical Sooners in Oklahoma. YouTube was an appetizer. It’s clear now that the trough is open for comers. Those lacking alacrity and gumption, who miss out on the early squatting, risk being relegated to the whimpering-at-a-whisper role of land losers. Sooners make history, Laters change their plans.

And with Oklahoma taken, the Laters turn towards Nebraska. Watch for Microsoft and Yahoo to speed towards ValueClick and SpotRunner. If $3.1 billon for DoubleClick was at inflated earnings or total ad revenue ratios, wait until the panicked settlers arrive in Nebraska to grab what’s left. ValueClick and SpotRunner execs, with stock options, just got wanderlust.”

Revenue Senior Writer Alexandra Wharton also spent a lot of time since the deal was announced getting the reaction of other industry folks. Here’s what people told her:

“If I were a Dart for Search client, I would switch really fast before the deal closes so Google doesn’t get access to all of my data. Many large advertisers don’t use Google Analytics because they don’t want to share their vital stats with Google. With this acquisition, Google will gain access to many of DoubleClick’s largest advertisers’ vital statistics.

I think this was more a strategic buy to keep their lead on MSN and Yahoo, rather than an asset they needed. Google has the best programmers in the world; they could have easily built whatever technology they are getting from DoubleClick. It maybe would have taken a few months or years, but $3 billion seems high.”

- Ben Kirshner, founder of Elite SEM
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“Given Google’s history of innovation, I think this acquisition could have a profound impact on affiliate marketing. Perhaps Performics will now set the standard as the Web 2.0 affiliate network.”

- Shawn Collins, co-founder of Affiliate Summit

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“Google is set to take over the entire internet aiming to take a stranglehold on everything e-commerce. Personally, I find this somewhat alarming. Why?

1. The “free” Google shopping cart – Google now has very powerful information right from the initial search engine click through to the sale.

2. AdWords – Now Google has definitive sales conversions data on exactly what keywords convert. So, could that mean increases AdWords costs? I would think so.

3. Now, Google takes over affiliate tracking companies.

Yikes! That’s too much control for one company to have.”

- Colin McDougall, affiliate and author of the VEO Report

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“It’s a smart move by Google to buy DoubleClick’s ad display technology and client relationships. The key is which path Google decides to take with the acquisition. While it makes sense to integrate DoubleClick with AdWords, it could alienate those advertisers that selected DoubleClick for its vendor neutral platform.”

- Andy Beal, founder of Marketing Pilgrim and marketing consultant

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“Google has KILLED the search space but Google sees itself as an advertising platform (radio, TV, Print, Search), it was just missing the display component. Sure they had some display presence but nothing to make a dent. Well now they’ve just made the biggest dent possible. Think about it, where can Google NOT compete with MSN and Yahoo? On the display side, buying DoubleClick is as much an opportunity as it is insurance against a competitor snapping them up.”

- Wil Reynolds, founder of Seer Interactive

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“Definitely good for Google, could be good for publishers and advertisers. With its code about to be displayed on just about every site on the Web, I’m hoping Google will use its increasing access to behavioral information with ads that better target individual surfers.”

- Rosalind Gardner, superaffiliate

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“My initial thought is that Google has finally made a purchase that they can monetize immediately; continue to grow within the area of strength advertising by bringing the dominant display advertiser into their fold.

Many of Google’s homegrown products don’t seem to have a revenue model although amazing in their technology and usability (print, GMail, chat, Froogle, etc.) Their acquisitions such as Google Earth, Urchin and most recently YouTube are solid products without a revenue model that is easily seen or understood yet. Doubleclick is not in this category. It will clearly bring in revenue.”

- Holly Preuss, principal of Granular Solutions

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“This is a very interesting purchase in that there were other suitors for Doubleclick’s hand. The real challenge will be in the integration of this acquisition. Google has been making big bold purchases — first YouTube and now DoubleClick, but the task of integration is yet to come.”

- Amanda Watlington, strategy consultant

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“The online advertising industry continues to evolve and grow rapidly. This acquisition gives credence to the idea that CPA advertising is the most likely driver of future online advertising and companies that help advertisers and merchants better understand the value of their online marketing expenditures will be in high demand.”

- Choots Humphries, Co-President of LinkConnector

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Let us know what you think about the deal. lisap@revenuetoday.com\