Mobile

Apple to buy Quattro Wireless mobile ad firm for $275M

Apple is expected to announce soon that it has purchased Quattro Wireless for $275 million, according to a report by AllThingsD. Quattro has a mobile ad network and platform that lets advertisers target mobile users with ads.

The report said several sources had confirmed the announcement but that Apple has declined comment. The move would increase the stakes in the mobile ad business, since it would be a kind of counter to Google’s $750 million acquisition of AdMob, which competes with Quattro.

The announcement could come as soon as tomorrow, according to the report. Waltham, Mass.-based Quattro is focused on ads for smartphones such as Google’s Android devices and Apple’s iPhone. The company has raised almost $30 million from Highland Capital Partners and Globespan Capital Partners. Its clients include Ford, Disney, and the National Football League.

The news comes on the eve of Google’s new big move against Apple: the launch of the Google-designed Nexus One smartphone.

This is somewhat surprising because Apple so far has remained very focus on producing excellent hardware devices, as well as software that serves those devices. The advertising business is somewhat removed from this core focus. But such a move would come at a time when the mobile industry is seeing massive growth, now that people are furiously buying up smartphones and spending much more time with them. These phones surf the mobile web much more efficiently, and so advertisers are eager to get in front of mobile users.
It also comes right after Google acquired AdMob, a company that is considered a leader in mobile advertising, for $750 million. AdMob has recently increased the number of ads it serves on Apple’s iPhone applications, and this acquisition, if it goes through, may suggest that Apple sees it as imperative to be a player itself in the ad industry. Also, Google’s Android operating system has emerged as one of Apple’s most aggressive competitors in the mobile phone industry. And with Google now enjoying what looks to be a huge lead in mobile advertising, this could be seen a prudent defensive move by Apple

This would be a major departure by Apple from its traditional focus on producing excellent hardware devices, as well as software that serves those devices. But the move also comes at a time when the mobile industry is seeing massive growth, now that people are furiously buying up smartphones and spending much more time with them. These phones surf the mobile web much more efficiently, and so advertisers are eager to get in front of mobile users.

The move may suggest that Apple sees it as imperative to be a player itself in the ad industry. Google’s Android operating system has emerged as one of Apple’s most aggressive competitors in the mobile phone industry. And with Google now enjoying what looks to be a huge lead in mobile advertising (Admob is considered the industry leader in mobile ads), this could be prudent defensive move by Apple.

Also, Apple had reportedly made a bid to acquire AdMob before it was acquired by Google.


Mobile developer or publisher? VentureBeat is studying mobile app analytics. Fill out our 5-minute survey, and we'll share the data with you.

Trackbacks

  1. [...] who co-founded the ad company Quattro Wireless which Apple bought for $275 million in 2010, is leaving the company to become a general partner at Boston-based Highland Capital. His departure [...]

  2. [...] who co-founded mobile ad company Quattro Wireless, which  Apple bought for $275 million in 2010 , is leaving Apple to become a general partner at Boston-based Highland Capital. His departure is [...]

  3. [...] who co-founded mobile ad company Quattro Wireless, which Apple bought for $275 million in 2010, is leaving Apple to become a general partner at Boston-based Highland Capital. His departure is [...]

  4. [...] have something to do with iAd, Apple’s struggling mobile advertising solution. The company purchased the mobile ad firm Quattro Wireless for $275 million in 2010, which was then refashioned into iAd, but never quite caught on with [...]

  5. [...] have something to do with iAd, Apple’s struggling mobile advertising solution. The company purchased the mobile ad firm Quattro Wireless for $ 275 million in 2010, which was then refashioned into iAd, but never quite caught on with [...]

  6. [...] would have something to do with iAd, Apple’s struggling mobile advertising solution. The company purchased the mobile ad firm Quattro Wireless for $275 million in 2010, which was then refashioned into iAd, but never quite caught on with [...]

  7. [...] would have something to do with iAd, Apple’s struggling mobile promotion solution. The company purchased a mobile ad organisation Quattro Wireless for $275 million in 2010, that was afterwards refashioned into iAd, yet never utterly held on with [...]

  8. [...] t&#959 d&#959 w&#1110th iAd, Apple’s struggling mobile promotion solution. Th&#1077 company b&#959&#965ght th&#1077 mobile ad organisation Quattro Wireless f&#959r $275 million &#1110n 2010, wh&#1110&#1089h w&#1072&#1109 th&#1077n refashioned [...]

  9. [...] 60 percent. Miller’s departure in August didn’t help either. He came over to Apple when it bought his mobile ad firm, Quattro Wireless, for $275 million in 2010, but ended up leaving for a venture capital gig at Highland Capital. [...]

  10. [...] by 60 percent. Miller’s departure in August didn’t help either. He came over to Apple when it bought his mobile ad firm, Quattro Wireless, for $275 million in 2010, but ended up leaving for a venture capital gig at Highland Capital. [...]

  11. [...] 60 percent. Miller’s departure in August didn’t help either. He came over to Apple when it bought his mobile ad firm, Quattro Wireless, for $275 million in 2010, but ended up leaving for a venture capital gig at Highland Capital. [...]