Eyeing to enhance its expertise in mobile advertising, internet giant Google Inc is all set to acquire mobile display ad technology provider AdMob for $750 million.
Google Inc has signed a definitive agreement to acquire AdMob, for $750 million in an all stock deal, the company said in a statement.
AdMob a leading mobile advertising firm engaged in the development of display advertising technology for mobile Internet sites.
"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," Google Vice-President of Product Management Susan Wojcicki said.
The deal will help Google in its efforts to develop more effective tools for creating, serving and analysing emerging mobile ads formats.
Both companies have approved the transaction, which is subject to customary closing conditions.
The acquisition would enhance Google's existing expertise and technology in mobile advertising, while giving advertisers and publishers more choice in this growing new area.
"The said acquisition will be an important moment for everyone involved in producing, consuming, or monetising engaging products on mobile," AdMob Founder and CEO Omar Hamoui said.
Saying that ads have become important in funding the development of innovative content on the Internet, Hamoui said "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."
Hamoui further added that "...Joining Google will only accelerate this process, ultimately leading to very real benefits for end users around the world."
This deal is one of the top-three acquisition in Google's history, behind the 2008 takeover of DoubleClick for $3.1 billion and its 2006 acquisition of YouTube for $1.65 billion.
