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Google Announces Deal To Acquire In-App Ad Firm AdMob

Submitted by Edward Kirk on November 9, 2009 - 3:54pm.
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Google has announced that they have struck a deal to purchase mobile advertising firm AdMob for $750 million. AdMob is currently the largest provider of advertising for iPhone applications and which creates revenue opportunities for the majority of free ad-supported apps without the need to charge a purchase price.


Google explains their reasoning:

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats. As this ecosystem continues to grow, the company expects these new marketing media to offer significant benefits:

- Advertisers will be better able to engage mobile users with AdMob's ad formats
- Publishers and developers will be able to monetize their content more effectively, which has benefits for the wider mobile ecosystem
- Users will see more relevant ads and ultimately get access to more ad-supported content and applications - improving their mobile experience

Google has published the full details of the AdMob aquisition on an informational website.

[via MacRumors]

Submitted by tchaves on November 9, 2009 - 6:47pm.
Crazy. Approximately a 15x revenue multiple with estimated $50 million in revenues. Definitely a hefty price, but this market is set to explode. Google may be smarter than we think.

Submitted by Dina Bq on November 17, 2009 - 12:37am.
For being one of the front-runners in the race to deliver effective mobile advertising, the mobile advertising network deserves to be praised. Mobile Advertising has become popular for the past few years. Acquiring AdMob is a good move for Google, though many of us would give same day loans not to see another ad on our phone. As if there wasn't enough advertising that we all have to see constantly, to the point that anytime we browse the internet, turn on the TV, etc, that it makes the average person want to vomit profusely, but AdMob, the mobile advertising company, will likely be well utilized by Google and their Android platform, which has been selling like hotcakes – heck, if you tell these cell phone/tech dummies that it has Android, you could get them to pay hundreds for a lead balloon.