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Google purchase of AdMob being investigated by FTC

updated 01:00 pm EST, Thu December 24, 2009

FTC takes second look at Google and AdMob deal

The Federal Trade Commission is launching a closer investigation at Google's proposed purchase of mobile marketer AdMob for $750 million. The US antitrust regulator has requested more information regarding the deal earlier this week, according to Google. It claims to not have much cause for concern and acknowledges the tighter scrutiny is inevitable as the company grows larger.

Despite the attention, Google is confident its purchase of AdMob will be approved.

AdMob operates a network that sells and brings ads to apps and websites viewed from the iPhone and other mobile devices. Its profits range from $45 million to $60 million, and the FTC hopes to determine if the technology and advertising contacts would give Google an unfair advantage in sales of cellphone ads. Google's profits in 2009 are expected to top $22 billion, thanks largely to ads that pop up beside web search results and other content on the web.

The FTC's added scrutiny is likely to delay Google's acquisition of AdMob by at least a few months, some analysts believe. [via AP]

By Electronista Staff
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  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008


    Google can do whatever it pleases...

    Of course, it's trying to get an unfair advantage over other companies. That's what making money is all about. The FTC can't do anything about this. I'm just angry that Apple didn't try harder to acquire AdMob. Apple badly needed that extra revenue to acquire such an easy revenue stream to boost company value. Apple could have easily tossed a billion to get AdMob. Now it's got nothing but some crappy Lala which will only likely have use as a way to acquire some technology of streaming.

  1. testudo

    Forum Regular

    Joined: Aug 2001


    Re: Google

    Apple has no desire to get into the advertising business. The only reason they wanted AdMob was to keep usage and user information out of Google's hands.

    And Apple probably couldn't see that they needed that extra revenue, what with not being able to see over the pile of cash they've been raking in every quarter.

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