Google Buying AdMob
Gail Chiasson, North American Editor
Google has announced that it’s buying mobile ad network AdMob, one of the leading companies for selling mobile advertising on smart phone platforms, for US$750 million in stock.
“Mobile advertising has enormous potential as a marketing medium, and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time,” Susan Wojcicki, Google’s vice- president of product management, said in a statement. “AdMob is the quintessential Silicon Valley startup – generating impressive year on year revenue growth.”
San Mateo, California-based AdMob’s talent and innovation were apparently a prime attraction for Google to add to its engineering team.
Since its launch, AdMob has served more than 125 billion mobile ads across a variety of platforms including iPhone and Android. AdMob’s ads consist of both banners and text links.
eMarketer has predicted that mobile will outpace online spending to reach close to $1.6 billion in 2012. The figure is expected to reach approximately $416 million this year.
When Google reported earnings last month, the company had $22 billion in cash, and Eric Schmidt, CEO, said his company felt “confident about investing heavily in our future.”
The deal is the third-largest acquisition in Google’s history, trailing the $3.1 billion paid for DoubleClick and $1.65 billion paid for YouTube.
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