Google Inc.’s Acquisition of AdMob

Description

Google Inc.’s Acquisition of AdMob: Abstract

Google Inc.’s Acquisition of AdMob is a case study by Nikhil Varaiya.

This case describes Google‘s decision in November 2009 to purchase mobile advertising start-up AdMob in a cash-and-stock deal valued at $750 million.

Teaching objectives

The objectives of the case are:

• To highlight the role of acquisitions as integral to Google’s growth strategy
• To explore the extent to which the perception and pricing of Google as a growth stock necessitates the continual search for new growth opportunities
• To determine the drivers of growth in the online advertising market and different segments within that market
• To navigate the considerable challenges of valuing a potentially high-growth start-up both as a stand-alone firm and as an acquisition target

Additional information

Teaching notes are available for professors. Contact the HEC Montréal Case Centre.