The Justice Department blessed Google's $400 million bid to buy online display ad provider Admeld after six months of scrutiny to assure the deal did not violate antitrust laws.
(NASDAQ:GOOG) $400 million bid to acquire Web display ad specialist Admeld has
been approved by the Justice Department, both parties confirmed Dec. 2.
engine provider in June
agreed to purchase Admeld
, which helps large publishers sell display ads,
those graphical advertisements that catch users' eyes on the fly as they land
on the advertisers' Websites.
software helps the likes of Thomson Reuters and News Corp. select ads from
networks such as Advertising.com, Google's DoubleClick Ad Exchange and Yahoo's
Right Media. Admeld competes with rivals such as Pubmatic and the Rubicon
Some six weeks
after Google announced its intent to buy Admeld, the DOJ
issued a second request
for information from Google about the deal.
thorough review of the evidence, the division concluded that the transaction is
not likely to substantially lessen competition in the sale of display
advertising," the DOJ's
antitrust division said in a statement
. "Web publishers often rely on
multiple display advertising platforms and can move business among them in
response to changes in price or the quality of ad placements."
sentiment, why was Google held up from consummating its Admeld deal at all?
Google's massive market share in search and online advertising, such antitrust
scrutiny has become de rigueur for large Google acquisitions.
Trade Commission in 2010 investigated Google's bid to buy mobile ad provider AdMob
for $750 million
, while the DOJ
put Google's $700 million bid
for travel software provider ITA Software
through the ringer before blessing it earlier this spring.
the FTC is currently
a broad antitrust inquiry into Google's search ad practices.
The European Commission, too, is investigating Google for its search business.
pleased with the DOJ's decision. Neal Mohan, Google's vice president of display
in a corporate blog post that Google will work quickly to close the deal in the
are spending more and more time consuming online content across numerous
devices, advertisers are running more online and mobile campaigns to reach
them, and ads continue to get more engaging and relevant," Mohan wrote.
"This represents an unprecedented moment for publishers. We believe that
improved technology and services can help publishers seize it and make online
advertising work much better.
Admeld's products will remain separate from Google's DoubleClick for Publishers
and the DoubleClick Ad Exchange display ad services for now.
Google and Admeld's staff will build new products and services that help its
publisher partners manage and sell their ad space across not only desktops, but
across mobile devices such as tablet computers.