Google in Talks to Buy Adscape Media

Google(GOOG Quote) reportedly wants to expand its mammoth advertising reach into the world of video games by acquiring Adscape Media.

The search titan is in talks to acquire Adscape, a closely held San Francisco company, according to a report in The Wall Street Journal Saturday that cited people familiar with the deal. An acquisition could be announced as early as next week, the report said.

Adscape's technology delivers advertisements over the Internet into video games. By acquiring it, Google could offer its advertising customers a new venue for ads.

The report noted that while sending ads into video games is still a nascent market, game publishers are pursuing it aggressively. New game consoles are designed to be connected to the Internet, and advertisements can appear in the background of games.

Google rival Microsoft(MSFT Quote) last year year acquired Massive, a company that delivers ads to video games, for $200 million, the report noted.

Google shares finished Friday up $1.92 at $489.75.