Google’s AdMeld Acquisition Approved by Regulators (GOOG)
The U.S. Department of Justice (DoJ) today approved Google Inc.’s (NASDAQ: GOOG) acquisition of online advertising service AdMeld. The DoJ concluded that the acquisition of AdMeld would not diminish competition.
The decision clears the way for Google to take control of AdMeld. The approval came six months after the deal was first announced. Google is likely to complete the acquisition within the next few days; however, the two companies’ products will remain separate for some more time.
The financial details of the transaction have not been disclosed by Google. AdMeld, which is based in New York, assist websites in figuring out how to make the most money from the amount of space they have available for display ads.
The DoJ said in a statement today that the investigation determined that 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.
Google has been on a buying spree. Earlier this year, the company announced the acquisition of Motorola Mobility Holdings. The acquisition of Motorola is still being reviewed by regulators. If the transaction is approved, it will be the biggest in Google’s 13-year history. It may be recalled that the company had failed to acquire Groupon Inc. (NASDAQ: GRPN) for $6 billion last year.
Meanwhile, Google is facing a broader inquiry from the Federal Trade Commission (FTC). The FTC is probing whether the Mountain View, California-based company abused its dominance of Internet search to make it harder for people to find rival services and apply pressure on advertisers to pay higher prices.
Google shares rose in trading today, ending the day 1.07% higher at $620.36. The stock has risen 4.44% this year, outperforming the Nasdaq, which is down 0.98% this year.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |