James Delahunty
16 Feb 2007 15:02
According to Red Herring, Google Inc. is preparing to take a step into in-game advertising as predicted, by acquiring Adscape Media Inc. for $23 million. Red Herring cited sources familiar with the matter in its report. Google declined to comment on the report citing company policy. Video game industry analysts say that the acquisition could give a major boost to the in-game advertising market.
Microsoft Corp. purchased Massive Inc. for $200 million, sealing itself into the market. Massive struck several deals with publishers including UbiSoft Entertainment SA, THQ Inc. and Take-Two Interactive Software Inc. to place advertisements in their titles. Many experts say that Google dropped the ball when that deal was struck.
"My take on this probable deal is that it doesn't make a lot of difference to Google ... but it does provide significant credibility to the game marketing space," Forrester Research Inc. analyst Shar VanBoskirk told Reuters. Other companies that Adscape competes with include Double Fusion and IGA Worldwide.
Source:
Reuters