Google continues it’s never ending endeavour to capture the web, acquires mobile advertising company AdMob and VoIP startup Gizmo5.
Let’s discuss both acquisitions in detail.
This is Google’s 3rd largest acquisition ever. Google announced it’s buying AdMob, a provider of mobile ad technologies, for $750 million in stock. This could give the relatively small market for ads on mobile devices a BIG PUSH.
With the acquisition Google gets better grip on Mobile industry with Android software already on increasing popularity such as with the Motorola’s Droid.
“Google could have built this itself, but this gives them a head start,” says mobile analyst Greg Sterling of Sterling Market Intelligence. “It will thrust Google into the forefront of mobile display ads.”
In particular, AdMob provides Google with the ability to serve display ads, the pictorial banners that are the chief revenue source for most Web sites, to cell phones and other mobile devices. Google last June introduced AdSense for Mobile in a bid to provide Web sites with display ads akin to its multibillion-dollar AdSense program for conventional Web sites.
“We got a chance to get an unbelievable engineering team,” Vic Gundotra, a Google vice president of engineering, said in an interview. Susan Wojcicki, Google’s vice president of product management, added that AdMob founder Omar Hamoui is “really a visionary in this space.”
Last month Skype had it’s eyes on Gizmo5, a VOIP Startup. Gizmo5’s SIP infrastructure could theoretically replace Skype’s proprietary P2P back end, but the deal broke in the dark.
In the meantime, Google bought them for around $30 million. The deal is done, and will be announced shortly.
Gizmo5 is a good fit with a number of Google products. Google Talk allows voice calls between users but has no PSTN link to allow incoming or outbound calls to real phones. Gizmo5 does this well already. This could be a potential place where Gizmo5 can fit in.
On the other side, Google Voice is a great VoIP and phone identity service, but they have no endpoint for calls. Gizmo5, which by the way already integrates with Google Voice, is a soft phone end point for Google phone users i.e. it will be enable making and receiving calls on Google Voice phone number from computer.