Google supports Apple-Quattro deal

Wed Jan 6 2010, 08:38 AM

Google says it welcomes Apple's USD275m acquisition of mobile ad network Quattro as the deal will help boost the nascent mobile advertising market by making it more competitive. The Quattro acquisition is seen by many as a defensive move by Apple following Google's USD750m takeover of AdMob in September last year, but Google is putting a positive spin on the deal.

According to a Google press release, the deal is "further proof that the mobile advertising space continues to be competitive ... with more investments and acquisitions in the space, including from established players like Apple and Google, that's a sign that vigorous growth and competition will continue."

Most analysts expect mobile advertising to take off over the next couple of years as mobile web use begins to outpace traditional forms of internet access. eMarketer predicts that mobile advertising will triple from just USD416m this year to USD1.56bn in the next four years.

Takeovers in the sector by firms such as Apple and Google are likely to accelerate expansion in mobile advertising, and many commentators expect other firms such as Microsoft to make their own bids to buy into the market.

However, Google's warm response to Apple's acquisition of mobile ad network Quattro may also be motivated by a desire to avoid antitrust scrutiny of the firm's own acquisition of AdMob.

All Things Digital's Peter Kafka says Apple's acquisition may ease pressure from the Federal Communications Commission, which recently requested further information about Google's deal.