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Google Deal to Buy AdMob Coming Under Scrutiny
Google's US$750 million acquisition of mobile advertising agency, AdMob may be facing regulatory hurdles in the USA after the Federal Trade Commission (FTC) requested sworn declarations from industry firms, including competitors regarding their merger.
At least two companies are being asked to sign statements, reported Bloomberg News, citing people who declined to be identified because the probe isn't being conducted in public.
Agency officials typically collect declarations "when they think there is some significant chance" the agency will ask a court to block a merger, or seek to modify a deal, Stephen Calkins, a former general counsel at the FTC told Bloomberg. Even so, it's not uncommon for the agency to collect affidavits and then not litigate, he added.
Last November, Google announced that it was offering to pay US$750 million to buy AdMob. A rumour had emerged just prior to the announcement that Apple was looking to buy the company, for the much lower figure of US$400 million. The company is privately held and backed by Sequoia Capital, Accel, DFJ Growth fund and Northgate.
"We're confident that they'll conclude that the rapidly growing mobile advertising space will remain highly competitive after this deal closes." Adam Kovacevich, a spokesman for Google said in a statement.
On the web: Bloomberg News
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