Apple Inc., the Cupertino based consumer electronics company has acquired the wireless advertisement service provide Quattro for $275 million, a New York Times owned technology blog has reported.
The blog, ‘All Things Digital’ mentioned that the iPod maker was on the verge of making an official announcement regarding the acquisition, which will surely ensure Apple’s entry into the mobile advertisement market.
Quattro Wireless, a Waltham based company, provides in-application advertising services, a sector which is proving to be lucrative considering the boom in the mobile application market all over the world.
Interestingly, Apple had attempted to acquire Quattro’s competitor, AdMob which ended up being swallowed by Google Inc., which purchased it for $750 million, almost three times the price tag of Quattro.
Both Quattro and AdMob offer services which enable customer to post ads in smartphone applications and it will be interesting to see how the two behemoths compete against each other in the mobile advertising market with Google having the upper hand as AdMob is a much bigger company than Quattro.
The deal will see Quattro CEO reporting directly to Steve Jobs and it will also ensure that nearly 150 employees of Quattro in Waltham, Massachusetts to retain their respective jobs.
I don't think that there's a more powerful statement from Apple that it now sees the search engine giant as its principal competitor. Google has launched a mobile phone, Apple responds by entering the mobile ad markets months after the acquisition by Google of Admob.
(All things digital)