Google Inc. (NASDAQ:GOOG) is buying one of the biggest mobile phone advertising companies for $750 million in stock. AdMob started in December 2006 and is based in San Mateo, California. AdMob powers a lot of the advertising that shows up in iPhone and Android applications.
“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,” stated Google VP of Product Management Susan Wojcicki. “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.”
“I think people underestimate how important ads have been to funding the development of innovative content on the Internet. Our goal all along at AdMob has been to make it possible for developers and publishers to bring their products and ideas to mobile with the same business model,” stated AdMob founder Omar Hamoui.
The acquisition is subject to closing conditions, but both parties have agreed to the transaction.