Business

Google buys AdMob in $750M US all-stock deal

Google Inc. announced Monday it has agreed to buy mobile ad network AdMob for $750 million US in stock.

Adds to its ability to sell mobile advertising

Google Inc. announced Monday it has agreed to buy mobile ad network AdMob for $750 million US in stock.

The move will add to its bid to sell advertising on cellphones and other mobile gadgets.

Google 3-month chart

San Mateo-based AdMob provides a market for advertisers to buy space on websites geared for mobile devices.

Google already has a mobile ad delivery system, DoubleClick Mobile, which came with its $3.2 billion acquisition of DoubleClick Inc. in 2008.

The company says the takeover will increase its expertise in a market that is expected to grow rapidly over the next several years.

Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time," Susan Wojcicki, Google's vice-president of product management, said in a statement.

Google shares closed on the NASDAQ up $11.41 US, or two per cent, to $562.51.

(With files from The Associated Press)