• Google's AdMob Deal in Trouble?

    Google Inc. has received a second request for information from the Federal Trade Commission on its planned purchase of mobile-advertising company AdMob, according to a blog post on their website yesterday. The company says it's not worried that the deal will be shot down, but some observers say the regulatory agency is worried about Google dominating the mobile ad market.

    Google agreed last month to pay $750 million in stock for AdMob to boost its sales of ads that appear in applications on mobile phones such as Apple Inc.’s iPhone. Google and AdMob combined will form the largest mobile-advertising company, with 30 percent to 40 percent of the market. Google group product manager Paul Feng said thet they are cooperating with the FTC, according to the blog posting, and expressed confidence that the deal would go through.

    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.
    Google, which dominates the market for ads linked to Internet search results, has been acquiring a lot of competitors and has drawn the scrutiny of the US federal government in the past. The FTC investigated Google’s acquisition of DoubleClick Inc. in 2007 for eight months before approving the deal. Last year the US Department of Justice said it would try to block the company's acquisition of Yahoo, and Google decided not to go forward with its takeover attempt. And the search behemoth is is also having trouble getting the necessary number of shareholders to vote for its acquisition of On2 Technologies.

    AdMob, meanwhile, has seen its growth decline in recent months. In August the service had 10.57 billion requests, and has since gone down each of the past three months, dropping to 9.76 billion requests in November. As ad requests from Apple iPhones and iPod touch devices continue to dominate the list of most common phones, observers speculate that AdMob is picking and choosing its partners more carefully, limiting hits from sources that don't run on lucrative smartphones.

    image via topnews.us
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