Google Will Buy AdMob for $750 Million

**Paul Daniel Ash** · 11-09-2009, 11:23 AM

It's just been announced that Google will buy the world's largest mobile advertising provider: Admob. The online search giant will buy out AdMob's stock which at current prices would total $750 million.

Admob's system allows developers to sell their apps for free and make money on ads. Many developers have found that the arrangement works better over the long term than a regular upfront sale of their apps, because the ad revenue continues to come in.

The large online companies like Google, Yahoo, and Microsoft hare in fierce competition to grab a piece of the mobile market. Since there are more mobile phone users in the world than computer users, the growth in that sector is considered to be much more potentially lucrative than traditional online advertising.

Omar Hamoui, Admob's founder, started AdMob in January 2006 while he was still a student at the University of Pennsylvania. He originally just sold web links from his dorm room, but really built his business on the iPhone's success, as he noted in his announcement:

We were so excited by the promise the iPhone represented that we shifted a significant portion of our attention to that device in its very early days. We launched the first iPhone ad units focused on the web and quickly added the capability to run ads in applications. Now with the addition of excellent devices from Palm, Nokia, RIM, and plethora of Android powered smartphones, we have all the preconditions necessary for what will be a tidal wave of mobile browsing and app usage. But let there be no mistake. Our business, and the mobile industry in general, owes Apple a debt of gratitude.

The companies noted today that the purchase will be subject to certain closing conditions, but both parties' boards have approved the deal.

image via AdMob

**bbillh77** · 11-09-2009, 11:32 AM

First. Great more adds just what we need

**nighthawk283** · 11-09-2009, 11:35 AM

I hate when they make money on adds and for us it gets annoying

**ifonemaniac** · 11-09-2009, 11:35 AM

Google-Mob SOUNDS SCARY

**psychodave** · 11-09-2009, 11:35 AM

Stupid ads can't escape them

**LGgeek** · 11-09-2009, 11:38 AM

Now we really need an add blocker. ad mob by itself was not too bad but with google in the mix it will really suck. Some one create the app , I'll buy it.

**hollow0** · 11-09-2009, 12:18 PM

$750 million? Damn! Why can't i create something so simple to make almost a billion on!

**wipeoutxxl** · 11-09-2009, 01:49 PM

.... Google...Apple... = Skynet....

**southfrisco** · 11-09-2009, 02:54 PM

People, these ads are harmless. The ones that I've seen are not that bad or intrusive although there is one free Apple app that will display a full screen ad before the app is completely launched and makes you look at it for 2-3 seconds before you can do anything.

Now the Zune HD, have you seen those? What little free games the Zune HD has makes you watch a 30 second ad before you can literally play the game each and every time you launch the game. So it could be much worse with the free Apple apps.

**SkyGuy5** · 11-09-2009, 03:41 PM

Originally Posted by southfrisco

People, these ads are harmless. The ones that I've seen are not that bad or intrusive although there is one free Apple app that will display a full screen ad before the app is completely launched and makes you look at it for 2-3 seconds before you can do anything.

Now the Zune HD, have you seen those? What little free games the Zune HD has makes you watch a 30 second ad before you can literally play the game each and every time you launch the game. So it could be much worse with the free Apple apps.

I'd hate to see the pop-up adds. This could kill the "free app" deal for me. Hope it stays the way it stands cause I don't see the adds going away w/o an ad blocker.

**tudtran** · 11-09-2009, 04:44 PM

I hate those ads. I'm not a big fan of Google right now.

**shadowtrainer02** · 11-09-2009, 05:17 PM

haha, google's in apple's walls now. if apple wants to keep having apps for free (or technically developers, but apple could still be hurt by it), they'll have to answer to google. anyone else sense a little payback for GV Mobile coming? :-)

**zatpgw** · 11-09-2009, 05:49 PM

FML. $750 million in 3 years.

Talk about return on investment.

**Cer0** · 11-09-2009, 08:26 PM

This is very good move. The use of mobile Internet is gaining massive speed and with their Anroid phones on market also why not. They will gain the money back in no time.

**astalavistadear** · 11-09-2009, 10:14 PM

Its not just att & verizon who have the battle lines drawn out

**StealthBravo** · 11-09-2009, 10:19 PM

Great news for AdMob. I am happy for the dude.

**Happy Noodle Boy** · 11-09-2009, 11:54 PM

FYI Google also bought Gizmo5, the VOIP that lets you use Google Voice for free nationwide calling.

Basically, Google is Skynet and I love them every day for it.

**one1** · 11-10-2009, 12:25 AM

I'll sell them admob for only 5 million. Back door, 8 pm, no witnesses, no paperwork.

**elr0y7** · 11-10-2009, 01:49 AM

Originally Posted by hollow0

$750 million? Damn! Why can't i create something so simple to make almost a billion on!

Exactly what I was thinking, damn college students and their good ideas!

**rhekt** · 11-10-2009, 02:32 AM

i was searching through my phones files today in ifile and found a few curious files by admob. curious if i deleted them. would their pesky advertisements in my apps dissapear? hmmmm

Thread: Google Will Buy AdMob for $750 Million

LinkBack

Thread Tools

Display

Google Will Buy AdMob for $750 Million

The Following User Says Thank You to bbillh77 For This Useful Post:

Posting Permissions