Saturday, 3 December 2011

Google to Close Admeld Deal after Clearing Antitrust Hurdle

With the Justice Department approving Google’s (NASDAQ: GOOG) purchase of Admeld Inc. on Friday, Google is confident of closing its purchase deal “in the coming days.” Google is expected to pay around $400 million for Admeld, an online display advertising-service provider.

As Google is increasing its influence in internet-related markets, its recent actions are receiving more and more scrutiny from antitrust regulators. When the company confirmed its deal to buy Admeld in June, the Justice Department asked for further information on the deal. The antitrust division of the Justice Department said Friday that it had received the necessary information from Google, Admeld and other market players during its investigation.

The division said in a statement that “After a 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 Justice Department said that during its investigations, it found that Web publishers depend on multiple display advertising platforms and are able to shuffle business among them in response to alterations in price or the quality of ad placements. Web publishers of online content are helped by Admeld to sell lower-priced advertising on their websites that they find difficult to sell on their own and thereby they get the tools to regulate who buys it.

Google’s shares went up recently by $5.12 to $618.97 and it generated nearly $30 billion in 2010, mainly from selling ads on its search engine.

Read More :  Google to Close Admeld Deal after Clearing Antitrust Hurdle

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