Google Announces Deal for Admeld; Price Tag Said to Be $390 Million
Google announced its deal to acquire online ad-optimization firm Admeld, the latest piece in their increasingly dominant infrastructure for online display advertising, including DoubleClick, Invite Media and Google's ad exchange.
Google did not disclose a price, but people close to the deal put the figure at $390 million in cash and stock, just shy of the $400 million reported by Ad Age and other outlets last week. A person said the final price had been "moving around" a bit due to the amount of Google shares in the deal.
That's a lot higher than Google's initial offer for Admeld, which was said to be in the $150 million to $180 million range.
"Together with Admeld, we hope to make display advertising simpler, more efficient and more valuable, provide improved support and services, and enable publishers to make more informed decisions across all their ad space," Google VP Neal Mohan wrote in a blog post.
The deal will bring Google several big Admeld clients such as News Corp., CBS, IDG and Weather.com, which use Admeld's technology to help decide which ads to take on a real-time basis and at what price.
ContextWeb general manager Jay Sears said the deal will bring Google more scale in the real-time marketplace.
Investment bank Luma Partners advised Admeld in the deal. Admeld has raised $30 million in venture capital from Foundry Group, Spark Capital, Norwest Venture Partners and Time Warner Investments.