Google buys mobile ad business

SAN FRANCISCO, Nov. 10 (UPI) -- U.S. Internet giant Google said it would purchase AdMob, a mobile device advertising start-up, for $750 million in stock.

AdMob is an industry leader in selling banner ads that are viewed on the iPhone or appear on Web sites that mobile phones can handle, The New York Times reported Tuesday.

"The deal shows that Google is serious about becoming a major player in the mobile advertising ecosystem," Neil Strother, an analyst with Forrester Research, told the Times.

While the purchase, "puts Google in the front-runner position," Strother said, the company paid more for the company than the entire mobile ad industry was worth in 2008, market researcher Kelsey Group said.

Kelsey Group estimates the mobile ad sales industry generated $160 million in revenue last year.

Google said it was looking at growth.

"We see mobile as a huge growth opportunity for us. We see an opportunity working with AdMob to really accelerate our efforts in an important industry for Google," said Susan Wojcicki, Google's vice president for product management.