Google has issued a statement regarding the company's pending acquisition of AdMob. Google's intent to acquire the company was announced back in early November. The deal was for $750 million in stock.
Since then, the Federal Trade Commission has vowed to closely scrutinize the deal. Google had this to say today:
As we said when we announced the deal, we don't see any regulatory issues with this deal, because the rapidly growing mobile advertising space is highly competitive with more than a dozen mobile ad networks.
That said, we know that closer scrutiny has been one consequence of Google's success, and we've been talking to the U.S. Federal Trade Commission over the past few weeks. This week we received what's called a "second request," which means that the FTC is asking for more information so that they can continue to review the deal.
While this means we won't be closing right away, we're confident that the FTC will conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes. And we'll be working closely and cooperatively with them as they continue their review.
Upon announcement Google highlighted these things about the deal:
- The deal will bring new innovation and competition to mobile advertising, and will lead to more effective tools for creating, serving, and analyzing emerging mobile ads formats.
- This deal will benefit developers, publishers, and advertisers by improving the performance of mobile advertising, and will provide users with more free or low-cost mobile apps.
- The mobile advertising space will remain highly competitive, with more than a dozen mobile ad networks. The deal is similar to mobile advertising acquisitions that AOL, Microsoft, and Yahoo have made in the past two 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," said Susan Wojcicki, Vice President of Product Management at Google upon the announcement.
Google says since the announcement, they have seen a quite positive reaction from advertisers and publishers, who are "enthusiastic" about the possibilities the deal might bring. It's hard to say how long the regulatory process will take, but we'll keep you posted as we learn more.