Apple poised to buy rival to Google's AdMob
Published: 5 January, 2010
READ MORE: M&A | Google | Apple | Advertising
After losing momentum in 2009, mobile advertising is set to be a key battleground in 2010. Apple is showing its hand early, and is reportedly poised to pay $275m for Quattro Wireless, a direct competitor to AdMob, recently acquired by Google.
Apple has joined Nokia as a serious obstacle to Google's claim to the mobile web crown. Its recent acquisitions have mirrored Google's own areas of strength, with expansions in mapping, streamed media (LaLa) and others. It is not digging as deep into its pockets as its erstwhile friend for a mobile ad business - Google paid a massive $750m for AdMob, though Apple was also thought to have made a play for that firm.
Like the more famous AdMob, three-year old Quattro is focusing heavily on smartphone advertising for devices like the iPhone. It has raised about $30m in venture capital to date, mainly from Highland Capital Partners and Globespan Capital Partners, and its clients include Ford and Disney.
Apple's bid was leaked by The Wall Street Journal's affiliate blog, All Things Digital, though has not been confirmed, but the sources said the deal could be announced today.
In October, Google CEO and former Apple board director Eric Schmidt said he wanted to move more firmly into mobile advertising as the smartphone looked set to be the primary search vehicle within a couple of years. According to research from Zenith Optimedia, paid search advertising will account for 15.1% of all marketing spend by 2011, up from 10.5% in 2008. Nokia's efforts have been more stop-start, but it acquired ad specialist Enpocket in 2008 and plans to expand its Ovi-based advertising activities this year.
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