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Google to Acquire AdMob for $750 Million

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Re: Google to Acquire AdMob for $750 Million

#22
post #21
post #20

Earlier quoted context omitted.

And from the other direction: http://www.admob.com/google

it's interesting how google's page puts the price right in the first sentence, but it's nowhere in the admob notice.

Not sure, but it might be that as a public company, they have to release the price as it is public information anyway.

Re: Google to Acquire AdMob for $750 Million

#23

So obviously I don't understand this market at all, can someone explain to me why google couldn't just copy ad-mob's business practices and features?

Also, defensive. Consider the other big players - Google would prefer MS or Yahoo don't snap Admob up.

Google might be able to replicate the Adbob business but it would take time. Admob + Google's existing strength is a big head start.

Re: Google to Acquire AdMob for $750 Million

#24
post #7

Earlier quoted context omitted.

They did. Google's been running mobile ads (first in Japan, then worldwide) since 2006. But AdMob just plain does it better -- nicer interface and significantly higher CPMs for publishers. I'm sure they also wanted the talent. I've met one or two of the AdMob guys and they seem pretty sharp.

Seems like google could have used some of that 750M to operate at a loss, pay out higher CPMs and attract publishers. It also seems like google could have, in theory, copied their interface or even improved on it. Could it be that google's now too big to make those kind of adjustments once it builds the momentum? The talent angle of course makes sense, they are both pulling in top tier employees and removing top tier…

scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior

scenario b: spend cash you can easily afford, have an immediate cash flow return, get a solution that is known to work, eliminate competitive threat without pissing off anyone in the process while ingesting talent at the same time

it's fairly easy to see why GOOG chose the latter option.

Re: Google to Acquire AdMob for $750 Million

#26
post #21
post #20

Earlier quoted context omitted.

And from the other direction: http://www.admob.com/google

it's interesting how google's page puts the price right in the first sentence, but it's nowhere in the admob notice.

Google approved both notices.

Re: Google to Acquire AdMob for $750 Million

#27
I predict for AdMob's eCPMs for November to drop sharply against their numbers for October based solely on their yanking of the IQ quiz SMS subscription offers (although they do still run some SMS-billing ringtone offers, so their numbers might not fall too fast). Those types of offers, while perhaps morally challenged, subsidize a tremendous amount of free content and services for the rest of us that have enough common sense not to click on them.

Re: Google to Acquire AdMob for $750 Million

#28

Earlier quoted context omitted.

Seems like google could have used some of that 750M to operate at a loss, pay out higher CPMs and attract publishers. It also seems like google could have, in theory, copied their interface or even improved on it. Could it be that google's now too big to make those kind of adjustments once it builds the momentum? The talent angle of course makes sense, they are both pulling in top tier employees and removing top tier…

scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior scenario b: spend cash you can easily afford, have an immediate cash flow return, get a solution that is known to work, eliminate competitive threat without pissing off anyone in the process while ingesting talent at the same time it's fairly easy to see why GOOG chose the latter op…

won't this also draw concern from regulators?
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