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

Search for Jobs

Index Last Change % Change
Dow 19,756.85 142.04 0.72%
Nasdaq 5,444.50 27.14 0.50%
S&P 500 2,259.53 13.34 0.59%
Treasuries 2.46 0.08 3.23%
Data as of 11:56am ET
Company Price Change % Change
Bank of America Corp... 23.09 0.14 0.61%
Ford Motor Co 13.17 0.14 1.07%
Chesapeake Energy Co... 7.72 0.12 1.58%
Twenty-First Century... 28.21 -0.43 -1.50%
Apple Inc 113.95 1.83 1.63%
Data as of Dec 9
Sponsors

Sections

Even Carl Icahn, one of President-elect Donald Trump's biggest cheerleaders on Wall Street, thinks the post-election exuberance in the stock market has gotten a bit out of hand. More

Republican leaders keep saying Obamacare is hurting the economy and killing jobs, but there's scant evidence for it. In fact, a number of studies show that the economy has been growing. More

Apple is investing in businesses run by China's largest wind-turbine maker -- but the move isn't part of any plan to build wind-powered gadgets. More

The Los Angeles city attorney is suing four major retailers over claims that they deliberately inflated the original price on some items that misled customers into thinking they were getting a better deal. More