Google Makes Ad-Grab
Chalk up another potential ad market for Google (GOOG).
The search giant has agreed to buy Adscape, a start-up that places advertisements in video games, for $23 million, according to Red Herring magazine.
The move puts Google, which has been trying to expand aggressively beyond its staple of online ads -- albeit with mixed results -- into another new, potentially high-growth advertising market. Google has recently stepped up efforts to enter radio, print and video advertising, but has yet to show significant revenue from those ventures.
The acquisition, which had been rumored for some time, also will heat up Google's rivalry with Microsoft (MSFT). The software behemoth entered the market in 2005 through a $200 million acquisition of Massive, an ad start-up company.But unlike Microsoft, which makes the popular Xbox video game consoles and is likely to limit ad placements to that platform only, Google may be free to target other consoles such as the Nintendo (NTDOY) Wii and Sony's (SNE) PlayStation. "Microsoft plus Massive Inc. will probably be tied to the Microsoft Xbox live platform only," wrote Global Equities Research analyst Trip Chowdhry, in a January research note which reported that Google's Adscape acquisition was likely in the works. "Google plus Adscape media will probably be platform-agnostic, delivering in-game advertisement to not only Xbox live, but also competing game platforms from Sony Playstation, Sega, Nintendo and other niche platforms." Chowdhry has no business relationships with Google or Microsoft.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV