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]