Google acquires AdMob for US$750M

The acquisition is the third-largest in Google's history after DoubleClick (US$3.1 billion, 2007) and YouTube (US$1.65 billion, 2006).

Google has acquired AdMob, the world's largest mobile advertising platform, for US$750 million in an all-stock deal. The move instantly establishes Google as a major player in the fast-growing market for serving up mobile advertising on smartphones.
"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," said Susan Wojcicki, VP of Product Management at Google, who described AdMob as the "quintessential Silicon Valley start-up." In a statement, Google said the deal would help it develop more effective tools for creating, serving and analysing emerging mobile advertising formats, which will allow advertisers to better engage with mobile users.

Founded in 2006, AdMob currently boasts 15,000 clients, including high-profile brands such as Ford, Coca-Cola, EA, P&G, Land Rover, MTV Europe, Adidas, and Paramount Pictures, as well as publishers such as AccuWeather, BluePulse, CBS Mobile, EA, Flirtomatic, Hollywood.com, Peperonity, and TinyTube. Its business has prospered in recent years following the introduction of top-end devices such as Apple's iPhone, which have the capability to support rich mobile advertising. While Google offers many forms of mobile advertising, its focus to date has been on mobile search ads, while AdMob's focus has been mobile display ads and in-application ads. Both companies have approved the transaction, though it remains subject to closing conditions. The acquisition is the third-largest in Google's history after DoubleClick (US$3.1 billion, 2007) and YouTube (US$1.65 billion, 2006).