Continuing its push into mobile communications platforms, Internet search giant Google announced that it is acquiring mobile display ad specialist AdMob for $750 million in stock.
Google has signed a definitive agreement to buy AdMob. Both companies have approved the transaction, which is subject to customary closing conditions.
The deal for Silicon Valley-based AdMob bolsters mobile-advertising technology that Google already owns from its previous acquisition of DoubleClick and will help the company "develop more effective tools for creating, serving and analyzing emerging mobile ads formats," said Google.
"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, in a statement. "AdMob is the quintessential Silicon Valley startup - generating impressive year on year revenue growth - and we're excited to welcome this talented team to Google."
In a blog post, Wojcicki and Google VP of Engineering Vic Gundotra talked about the growing use of Google's Android mobile operating system, which is now being promoted heavily by Verizon in its latest smartphones. They said that the AdMob deal with give publishers of mobile websites and applications better products and tools and more effective monetization of their content, and allow advertisers to deliver more relevant ads to mobile users.