Google to buy AdMob for $750 million in stock

I never intended this to be a Google blog but it seems like everyday they are doing something noteworthy. Yesterday B&C reported that Google would buy the mobile ad network start up AdMob to its stay of advertising and marketing services products.

In typical Google fashion they have massively overpaid for AdMob, which I estimate is likely generating $20 - $25 million in revenue. This tactic makes it very hard for anyone but Microsoft to counter them with a competitive purchase of another mobile ad network like Quattro, JumpTap or Millenium. Remember when Google bought DoubleClick Microsoft reacted and quickly acquired Atlas for $6 billion.

Google always makes the dominance play, AdMob has ~40% share of the iPhone ad market and a great brand among the agency community. It will be interesting to see how they integrate them into the fold - Will they launch an ad exchange for mobile? Use the network to promote YouTube superstars like TV tune-in or build on their sales team and launch an all out assault on MSN display sales business.