Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Google wins regulatory OK for AdMob deal

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Google won regulatory approval Friday for its $750 million acquisition of mobile ad firm AdMob.

The Federal Trade Commission said the merger would not harm competition, citing Apple's recent acquisition of Quattro Wireless as one factor since it allowed the tech giant to launch its own mobile ad platform, iAd.

"As a result of Apple (AAPL, Fortune 500)'s entry (into the market), AdMob's success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob's competitive significance going forward, whether AdMob is owned by Google or not," said the FTC in a statement.

AdMob, which Google (GOOG, Fortune 500) agreed to buy last November, provides display advertising technology for mobile Internet sites. The acquisition would compliment Google's big push into the mobile phone arena with its increasingly popular Android operating system.

"This decision is great news for the mobile advertising ecosystem as a whole," said Google's vice president of product management Susan Wojcicki in a blog post. "Throughout the FTC's review process, it's been clear that the mobile advertising is growing rapidly."

Google had posted numerous quotes from industry analysts and competitors in support of its AdMob acquisition earlier this month, ahead of the FTC's announcement.

Google and others had defended the merger by noting the large number of competitors that already exist in the smart phone search and app advertising market.

"With Google and AdMob facing strong competition every day from businesses like Apple, JumpTap, Millennial Media, Microsoft, inMobi, Greystripe, Mobclix and many more, we agree that there's vibrant competition in this space," Google said in a blog post earlier this month.

At the time of the announcement, Google said the acquisition would help its advertising partners improve how they target mobile Web users, as well as refine advertising formats to get end-users to click on more ads. Google said mobile advertising is a growing new area that has "enormous potential as a marketing medium."

The mobile search advertising market is rapidly growing as mobile Internet use soars. It is widely believed by industry analysts that search queries on mobile phones will surpass searches on traditional personal computers in the next five years.

Google said it's moving to close the acquisition in the coming weeks as "the industry is moving fast, and we're excited to part of the race."

Founded in 2006, AdMob serves mobile Internet ads for companies like Ford (F, Fortune 500), Coca-Cola (KO, Fortune 500) and Procter & Gamble (PG, Fortune 500). To top of page

Index Last Change % Change
Dow 17,681.80 -69.59 -0.39%
Nasdaq 5,090.47 -21.26 -0.42%
S&P 500 2,099.81 -8.76 -0.42%
Treasuries 2.29 0.01 0.31%
Data as of 10:58am ET
Company Price Change % Change
Facebook Inc 93.03 -3.96 -4.08%
Bank of America Corp... 18.15 -0.01 -0.06%
Apple Inc 122.10 -0.89 -0.72%
Whole Foods Market I... 36.53 -4.29 -10.52%
Micron Technology In... 19.81 -0.06 -0.29%
Data as of 10:42am ET
Sponsors

Sections

The company's sales have taken a hit since New York City found it was overcharging customers for some products. Whole Foods is actually cutting prices though. But it can't shake its bad reputation. More

The U.S. economy grew 2.3% in the second quarter -- a lukewarm sign of recovery after a sluggish first quarter. More

President Obama signed an executive order announcing plans to start working on the fastest supercomputer in the world. More

Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More