Apple has acquired mobile advertising delivery company Quattro Wireless for a reported $275 million, in deal which mirror's Google's acquisition of AdMob.
In a note to customers on its website, Quattro yesterday announced that the deal had closed, but stated that the company's services will not be disrupted by the deal.
“For now, the offerings and services you receive from Quattro Wireless will not change. We will continue to operate the Quattro Wireless network across all devices and platforms,” VP Andy Miller said.
The financial terms of the deal were not disclosed, but multiple sources toldAll Things Digital's BoomTown blog that Apple paid $275 million for the company.
The acquisition is a confirmation of Apple's ambitious plans to enter the mobile advertising market, in competition with Google.
While Google has a virtual stranglehold on the traditional online advertising market, the nascent mobile advertising market remains anybody's game.
Google recently paid $750 million to acquire competing mobile advertising startup AdMob, in a move to strengthen its presence in the market. Rival bidders for the company reportedly included Apple.
But the deal has caught the attention of US trade regulator FTC, which has launched an investigation into its effect on trade.
And thinktank Precursor has suggested that Google CEO Eric Schmidt's recent position on the Apple board - which he was compelled to vacate last August - may have alerted the company to Apple's mobile advertising ambitions.
This may be why Google paid such a high price for AdMob – a price-to-earnings multiple of over 16 times.
The exact nature of Apple's plan for Quattro remains unclear.