Google Acquires AdMob to Bolster Mobile-Display Business

http://adage.com/digital/article?article_id=140397
http://www.nytimes.com/2009/11/10/technology/companies/10google.html?ref=technology
Deal Called a 'Catalyst' That Could Kick off Consolidation in Ad Sector

In a bid to bolster its toehold in mobile-display advertising, Google is acquiring mobile-advertising network AdMob for $750 million in stock, sparking what could be the beginning of a major consolidation in the mobile-display advertising sector.

Google's strategy to buy rather than build was an admission that it needed outside expertise in display advertising, as it seeks to shore up its brand-building capabilities, creating a parallel mobile marketplace to its recently relaunched DoubleClick display-ad exchange.

"Google's display capabilities were quite weak by comparison to AdMob," said mobile analyst Greg Sterling. "This fills in a missing piece in their mobile strategy and accelerates Google to a leadership position in mobile-display advertising to complement search."

http://www.theglobeandmail.com/globe-investor/google-to-buy-mobile-ad-network/article1356728/

AdMob was founded by Omar Hamoui in 2006 while he was still a graduate student at the Wharton School at the University of Pennsylvania. The company is one of a few mobile advertising start-ups that analysts say have outsmarted the giants of Web advertising and established themselves as leaders in the emerging business. Analysts said that the others, which include JumpTap, Millennial Media and Quattro Wireless, are likely to draw the interest of Google rivals like Microsoft and Yahoo.

AdMob has received $47 million in financing from Sequoia Capital, Accel Partners and other investors and has about 140 employees.