By Ken Schachter

AOL made a $900-million cash bid Monday to buy TradeDoubler, a Swedish online marketing firm, in a move to further its transition from Internet service provider to advertising-supported portal.

The deal has won the blessing of the board of Stockholm-based TradeDoubler and shareholders holding about 20 percent of outstanding shares, the companies said in a joint announcement.

If the deal goes through, AOL would solidify its competitive position in the European market and further its strategy of building an online portal supported by advertising instead of subscription fees for Internet access.

Though Arctic Ventures, TradeDoubler’s largest shareholder, embraced the bid of 215 Swedish crowns ($30.66) per share, Reuters reported that Alecta, a pension fund with about 10 percent of TradeDoubler shares, called the offer inadequate.

The offer represents a 9 percent premium over the closing price of TradeDoubler on January 12, the last trading day before the deal was announced.

In Monday trading, shares of TradeDoubler climbed 15 percent to 227 crowns ($32.37), higher than the AOL bid, apparently in expectation that the United States company would sweeten its offer or than another suitor would emerge.

Focusing on Ads

In October, Dulles, Virginia-based AOL, a unit of Time Warner, sold the last of its Internet access businesses in Europe as part of its transition toward an advertising-based business.

Europe

“This investment provides a unique opportunity for both TradeDoubler and us to capitalize on the continued rapid growth in online advertising and e-commerce in Europe,” AOL CEO Randy Falco said in a statement. “We believe that TradeDoubler will be complementary with our other businesses, especially with our third-party advertising network, Advertising.com.”

Europe

The acquisition is Mr. Falco’s first since the former television executive was named to lead AOL in November. The former president of NBC Universal took the reins after AOL dismissed Jonathan Miller, who was in the midst of moving the company from reliance on Internet access fees to advertising dollars.

TradeDoubler shareholders are expected to consider the offer from the week of January 22 to the week of February 19, with closing about a week later.

The companies said the acquisition hinges on the approval of shareholders with more than 90 percent of TradeDoubler stock. The deal also must win approval from regulatory authorities.

Eight-year-old TradeDoubler provides marketing services to clients including Dell and The Apple Store.