AdMob Dials in $750M in Acquisition By Google

Mobile Marketing AdMob Dials in $750M in Acquisition By GoogleWhen Google buys a mobile advertising firm for $750M in stock, you know that mobile marketing is serious business. The planned acquisition of AdMob marks Google’s priciest buy since YouTube.

“Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob (see our past coverage) has already made exceptional progress in a very short time,” Susan Wojcicki, Google’s vice president of product management, said a statement.

Backed by Google investor Sequoia Capital, as well as Accel Partners, Draper Fisher Jurvetson and Northgate Capital, AdMob’s mobile marketing victory won’t be the last for startups in the space. The U.S. mobile ad market should reach $2 billion to $3 billion by 2013, up from less than $1 billion currently, according to Sanford C. Bernstein & Co.

AdMob, based in San Mateo, California, grew faster then CEO Omar Hamoui expected. Founded in 2006 in Hamoui’s dorm room at the University of Pennsylvania’s Wharton School, the advertising company grew into one focused on mobile display ads.

At the tail end of last month, AdMob released a report discussing smart phone adoption’s growth. The report highlighted the  growth of Google’s Android mobile 0S by 13% from August to September 2009.

This post was written by:

Adena - who has written 198 posts on Mobile Marketing Watch.


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11 Responses to “AdMob Dials in $750M in Acquisition By Google”

  1. They were making $100 million in ad revenue and their take on that is $40 million so this is a very very nice multiple. I have to say these guys have done a killer job. I remember right when they started out, heck they were a mobileStorm customer for a while.

  2. Eric says:

    Jared, I was thinking the same thing. These guys definitely did their homework and the results are amazing.

    Eric

  3. Love this post! Thanks for this. Ill be sure to come back again. P.S: Ive bookmark your site as well

Trackbacks/Pingbacks

  1. [...] Google’s purchase of AdMob, it proves even further what many have already speculated for a while- that mobile advertising will [...]

  2. [...] Google’s purchase of AdMob, it proves even further what many have already speculated for a while- that mobile advertising will [...]

  3. [...] of speculation as to what plans Google has for AdMob, and why it spent such a large chunk of change to acquire it.  While it’s obviously interested in it’s broad mobile reach in terms of advertising, [...]

  4. [...] of speculation as to what plans Google has for AdMob, and why it spent such a large chunk of change to acquire it.  While it’s obviously interested in it’s broad mobile reach in terms of advertising, Google [...]

  5. [...] planned $750M acquisition of AdMob by Google announced earlier this year is stuck in limbo as two consumer groups today began to lobby the FTC to [...]

  6. [...] explains why Google and Apple are diving head first into mobile advertising and marketing, with Google’s AdMob $750M acquisition and today’s announcement that Apple will likely acquire Quattro Wireless for $250M. (It looks [...]

  7. [...] Se Google si adopera per un’acquisizione simile, meno cara solamente rispetto all’operazione Youtube, significa quasi certamente che il business mobile sta diventando veramente un settore cruciale. When Google buys a mobile advertising firm for $750M in stock, you know that mobile marketing is serious business. (mobilemarketingwatch) [...]


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