Google snags AdScape for $23 million - GoFuckYourself.com

Barefootsies · 02-19-2007, 04:36 PM

Google is buying in-game advertising company AdScape Media for $23 million, a source familiar with the deal who asked to remain anonymous said Friday.

Representatives at Google and AdScape declined to comment on "speculation and rumor."

Buying AdScape gives Google technology that will allow it to serve ads to yet another market, the fast-growing video and Internet game industry. In-game ad revenue is expected to reach $200 million this year and as much as $700 million by 2010, according to Parks Associates and Yankee Group Research, respectively.

Google's biggest hurdle will be Microsoft, which last year acquired Massive, one of the largest in-game ad providers. In this area Microsoft has a rare advertising advantage over Google, thanks to thriving sales of its Xbox 360 gaming console and a long list of gaming titles, according to analysts.

Other rivals, such as IGA Worldwide and Double Fusion, are bigger and have more venture capital backing and, thus, would have been more expensive to buy, analysts said.

AdScape "has a technology, but not much of a market presence, so the price will be significantly lower" than it would have been for one of the other companies, Michael Goodman, a program manager at Yankee Group, said last week.

AdScape has one patent issued and 15 patents pending, according to Eva Woo, vice president of marketing at the San Francisco-based company. AdScape was started in Ontario by Dan Willis, a former engineer at Nortel. Chairman Bernie Stolar was formerly president of Sega America and Sega Entertainment.

Google has been rapidly moving into new ad markets such as print and radio over the last 18 months. Its automated online ad-serving system performed so well that fourth-quarter profit nearly tripled.

The Google-AdScape deal has been rumored to be in the works since last month when The Wall Street Journal reported it. Red Herring reported on Thursday that the deal was being finalized.

http://news.zdnet.com/2100-9588_22-6...feed&subj=zdnn

Drake · 02-19-2007, 04:56 PM

Good for google.

Splum · 02-19-2007, 04:57 PM

Google = monopoly

Scott McD · 02-19-2007, 04:59 PM

Google takes over the world. Stage 47 : Complete !

travelingmike · 02-19-2007, 05:06 PM

Great news, might make the stock price rise a nickle.....

StarkReality · 02-19-2007, 05:13 PM

Buying competitors is always the most elegant way to get rid of competition...before it even arises

jimb · 02-19-2007, 05:18 PM

Wonder how long it will be until they decide to take over Adbrite and Adengage...

Jim

RawAlex · 02-19-2007, 05:56 PM

I can't wait until someone comes up with a simple way to reroute traffic so their ads get shown instead for free.

Contra · 02-19-2007, 06:07 PM

money to burn over there -

marko13 · 02-19-2007, 06:09 PM

is there anything else that google still don't own it???

madawgz · 02-19-2007, 06:11 PM

Quote:

Originally Posted by jimb

Wonder how long it will be until they decide to take over Adbrite and Adengage...

Jim

2008?...

02-19-2007, 04:36 PM	#1
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	Google snags AdScape for $23 million Google is buying in-game advertising company AdScape Media for $23 million, a source familiar with the deal who asked to remain anonymous said Friday. Representatives at Google and AdScape declined to comment on "speculation and rumor." Buying AdScape gives Google technology that will allow it to serve ads to yet another market, the fast-growing video and Internet game industry. In-game ad revenue is expected to reach $200 million this year and as much as $700 million by 2010, according to Parks Associates and Yankee Group Research, respectively. Google's biggest hurdle will be Microsoft, which last year acquired Massive, one of the largest in-game ad providers. In this area Microsoft has a rare advertising advantage over Google, thanks to thriving sales of its Xbox 360 gaming console and a long list of gaming titles, according to analysts. Other rivals, such as IGA Worldwide and Double Fusion, are bigger and have more venture capital backing and, thus, would have been more expensive to buy, analysts said. AdScape "has a technology, but not much of a market presence, so the price will be significantly lower" than it would have been for one of the other companies, Michael Goodman, a program manager at Yankee Group, said last week. AdScape has one patent issued and 15 patents pending, according to Eva Woo, vice president of marketing at the San Francisco-based company. AdScape was started in Ontario by Dan Willis, a former engineer at Nortel. Chairman Bernie Stolar was formerly president of Sega America and Sega Entertainment. Google has been rapidly moving into new ad markets such as print and radio over the last 18 months. Its automated online ad-serving system performed so well that fourth-quarter profit nearly tripled. The Google-AdScape deal has been rumored to be in the works since last month when The Wall Street Journal reported it. Red Herring reported on Thursday that the deal was being finalized. http://news.zdnet.com/2100-9588_22-6...feed&subj=zdnn __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

02-19-2007, 04:59 PM	#4
Scott McD Too lazy to set a custom title Join Date: Nov 2002 Location: Glasgow, Scotland Posts: 67,795	Google takes over the world. Stage 47 : Complete ! __________________ I Buy My High Quality Traffic Here, You Should Too!

02-19-2007, 05:06 PM	#5
travelingmike Confirmed User Join Date: Nov 2005 Posts: 182	Great news, might make the stock price rise a nickle..... __________________ Everything You Need to Play........Casino, Poker, Sports Book, http://www.gamblingboard.com

02-19-2007, 06:09 PM	#10
marko13 Confirmed User Join Date: Apr 2004 Location: www.lvpshosting.com Posts: 7,512	is there anything else that google still don't own it??? __________________ We are responsible for your hosting ... Enjoy in your life. Shared hosting from $3.95 Europe Linux VPS plans from $11.37 http://www.LVPSHosting.com

02-19-2007, 04:56 PM	#2
Drake Hello world! Industry Role: Join Date: Mar 2003 Posts: 12,508	Good for google.

02-19-2007, 04:57 PM	#3
Splum Confirmed User Join Date: May 2003 Location: USA Posts: 6,195	Google = monopoly

02-19-2007, 05:13 PM	#6
StarkReality Confirmed User Join Date: May 2004 Location: 4 8 15 16 23 42 Posts: 4,444	Buying competitors is always the most elegant way to get rid of competition...before it even arises

02-19-2007, 05:18 PM	#7
jimb Confirmed User Join Date: Feb 2005 Location: Costa Rica Posts: 2,514	Wonder how long it will be until they decide to take over Adbrite and Adengage... Jim

02-19-2007, 05:56 PM	#8
RawAlex So Fucking Banned Join Date: Oct 2003 Location: In a house. Posts: 9,465	I can't wait until someone comes up with a simple way to reroute traffic so their ads get shown instead for free.

02-19-2007, 06:07 PM	#9
Contra Confirmed User Join Date: Dec 2006 Location: USA Posts: 437	money to burn over there -