Google said it hoped to close the acquisition in the next several months. Google, which already sells ads on mobile phones, offers a wide variety of mobile phone applications and makes the Android software that some handset makers use to power their phones. Google is hoping to replicate its success in selling Web ads in the mobile arena.
Google has agreed to acquire AdMob, a fast-growing start-up that developed technology to place ads on mobile phones, for $750 million in stock.
AdMob, Founded in 2006, calls itself the world’s largest mobile advertising marketplace. Today the mobile has a huge growth opportunity. The opportunity working with AdMob to really accelerate our efforts in an important industry. Google said that the acquisition would help the Internet search company to speed up efforts to develop more effective tools for creating and placing mobile ads on smartphones and other devices, a small but rapidly expanding market.
AdMob, which specializes in placing banner ads on mobile phones, would help cement Google’S forays in display advertising, an area where it has lagged rivals like Yahoo. The all-stock deal is modest for Google, given it’s roughly $177 billion market value. But it is the third-largest in its history, behind the $3.1 billion deal for the advertising specialist DoubleClick and the $1.65 billion acquisition of YouTube.