Microsoft Purchases Internet Ad Company

Microsoft Corp. has bought Internet advertising company LinkExchange Inc. and will make it part of the products and services it offers on MSN network.

In its announcement today, Microsoft did not disclose how much it paid for LinkExchange, a San Francisco company founded two years ago that now has 100 employees. However, The Wall Street Journal said it was a stock transaction valued at about $250 million, citing unidentified people familiar with the deal.

LinkExchange delivers services to help businesses promote and improve their Web sites and use electronic commerce. Its flagship product, Banner Network, is an advertising network of more than 400,000 Web sites that reaches more than 21 million online consumers.