In a story detailing the rancor between Apple and Google, Brad Stone and Miguel Helft report Apple made a formal bid to purchase AdMob for $600 million. Apple then had a 45 day period for due diligence where AdMob entered into an agreement that wouldn’t allow the company to shop itself around.
The 45 day period came and went without Apple closing the deal. Google then seized its chance.
Google offered $750 million, a 25% premium, for the company. It told AdMob it would be able to cash out its stock sooner. It also wooed AdMob with a sales pitch that went something like, ‘Hey, we get advertising, what does Apple know about advertising?’
The Times reports Google just wanted to keep the company away from Apple.
Sure, Google wanted a good mobile advertising company, but it paid a premium to keep it away from Apple. Brad and Miguel quote an executive familiar with Google’s acquisition strategy on AdMob: “Are they going to get $750 million in cash flow back? No way.”