Google on Monday announced that it has agreed to buy AdMob, a provider of display ad technology for mobile phones, for 750 million U.S. dollars in stock in a deal that the Internet search giant said will enhance its expertise and technology in mobile advertising.
"The deal will help Google in its efforts to develop more effective tools for creating,serving and analyzing emerging mobile ads formats," said a press release from Google.
Google believed the deal will also give advertisers and publishers more choice in the
growing area of mobile advertising while improving users' mobile experience with more ad-supported content and 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," said Susan Wojcicki, Google's vice president of product management.
"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," she added.
"The mobile industry has had no shortage of creative energy, amazing products, and talented entrepreneurs," Omar Hamoui, chief executive officer and founder of AdMob, said in a statement posted on the company's website.
"But until now, it has always felt like those of us involved in this space played second
fiddle to our online brethren. I believe that time is over," he noted. According to Google, both companies have approved the transaction, which is subject to customary closing conditions.