Still wondering if there is any money to be made on the Internet? Well according to NPR the U.S. online advertising hit a record $26 billion in 2010. The meteoric rise has been mostly attributed to online video and social media, an area which is expected to continue growing considerably in 2011. According to PricewaterhouseCoopers, the year-over-year growth in 2009 was close to 15 percent, a considerable spike over the previous record of 23.4 billion which was hit in 2008.
We have all heard the rough details of the Google AdMob buy. The deal was worth $750 million in cash and stock, but we had no idea how much of each was involved. Well, thanks to some SEC paperwork Google has filed, we finally know. It turns out El Goog used $530 million in stock for the deal. Most of the remainder, about $220 million, would have been cash.
We find this breakdown interesting. Google has more than enough cash reserves to have paid for the whole thing in cash. Google is currently way into the black with over $26 billion in cash. The AdMob folks must feel pretty confident that Google's stock will continue to increase in value. With the way the search giant is attacking new markets, we'd probably say that's a safe bet.
It's taken over six months, but Google today announced they have completed their acquisition of mobile advertiser AdMob. The deal was in doubt because of a Federal Trade Commission investigation. Just last week, the FTC finally said the deal could go through citing Apple's recently announced iAd platform. It's clear Google is looking to put AdMob to work on all mobile platforms. "We believe that mobile advertising can play a significant role in every single marketing campaign. We’re passionate about the unlimited possibilities in this space,” said Google's Susan Wojcicki.
Apple was in discussions with AdMob when Google swooped in and paid $750 million for the mobile advertising powerhouse. It originally looked like Google might end up with egg on its face as the FTC started making noises about antitrust concerns. Now all is well in the Google-verse, and you can keep enjoying those annoying ads on your phone. Do you think the FTC gave the deal enough scrutiny?