Google has announced that it has purchased one of the largest advertising networks in the mobile industry, Admob, for $750 million worth of Google shares.
The deal, according to the LA Times, is one of Google's largest ever acquisitions and squarely positions the search giant ahead of other competitors - like AOL and Microsoft - in the ever growing market of mobile search. Last October, Microsoft struck a strategic partnership with Phonevalley, Campaign reported.
Admob was founded only back in 2006 and in three years managed to grow its network to more than 15,000 websites. Google will leverage the importance of Admob in the mobile market to deliver its display ads on mobile pages.
Over the past 12 months, Admob claims that its business has more than doubled and managed to deliver more than 300 million adverts every day. Critically, Admob has been instrumental to roll out in-app advertising solutions for the latest smartphone platforms like for Android and the iPhone.
Susan Wojcicki, Google's vice president for product management, wrote on the Google's official blog that "Despite the tremendous growth in mobile usage and the substantial investment by many businesses . . . the mobile web is still in its early stages, We believe that great mobile advertising products can encourage even more growth. That's what has us excited about this deal."
Google is set to purchase more companies over the next few months as it revs up its acquisition engine. There are also rumours that it acquired Gizmo5, a VoIP specialist and Skype competitor.
Shares of Google jumped by 2.07 percent after the news was reported and is stable in after hours trade. This means that the financial markets were pretty please by the announcement which not only helped Google prop up its own portfolio but also made Admob shareholders, slightly more richer.