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The search giant Google which is high on acquiring companies has a new prey this time. According to people who familiar with the matter, Google is talking with AdMeld, a display advertising company, on buying AdMeld with about $400 million. AdMeld found in 2007 which has raised just $30 million in venture capital from Foundry Group, Spark Capital, Norwest Venture Partners and Time Warner Investments. Google’s move of acquiring AdMeld will be its latest push into the display advertising business, for ads with images and video.
AdMeld is one of optimization platforms and helps publishers sell their ad inventory. It has two competitors—Rubicon and Pubmatic. Till now Google didn’t have taken part in such kind of work. That’s why this deal is inevitable.
However, both Google and AdMeld haven’t made any comment on this deal.
In fact, Google’s display ad team began to expand its footprint in the ad tech ecosystem couple years ago, such as the DoubleClick deal in 2007, the Teracen deal in 2009 and the Invite Media deal in 2010.
As for the ad tech landscape, Luma Partners banker Terry Kawaja created a chart to show the number of the companies that appeared in recent years. In this chart, Google has had a presence on the lift side and center. Buying AdMeld will help it to have a presence on the right side, too.
Will Washington sign off on this deal? Google have a great confidence. This confidence comes from the much larger deal last year—$750 million deal for AdMob.
But there is a difference. Last year Google proved that buying AdMob wouldn’t help it dominate in the mobile advertising industry just because the mobile advertising industry hardly existed.
Instead of that displays ads are a real business. Google Chairman Eric Schmidt has thrown out a $200 billion goal, and the number will be much bigger.