While attending the MBA program at the Wharton School, Omar Hamoui was trying to solve a big problem. Basically, he wanted to find a way to get advertising revenues from his mobile site. Then he realized that many other sites probably had the same problem. So why not start a company to solve the problem?
That what he did, creating AdMob (yes, he is still on leave from Wharton). And, it was a great move. Today, Google (GOOG) agreed to buy AdMob for a cool $750 million in stock.
Google understands that the next-big platform for online advertising is mobile. Part of the strategy is to build technologies like Android as well as strike deals with companies like Motorola (MOT), which has recently launched Droid.
But, of course, Google also needs to find creative ways monetize things. To this end, AdMob should be a nice fit. Essentially, the company helps display ads as well as monitor performance. Already, AdMob has gotten traction with Apple's (AAPL) iPhone and RIM's (RIMM) BlackBerry. Oh, and the company has been moving onto Android devices.
AdMob has also been effective in getting top-notch advertising clients. Examples include: MTV Europe, Paramount Pictures and Coca-Cola (KO).
What's more, according to a message from Omar: "I have one important thank you left and it is for Google. We've been blown away by their entrepreneurial attitude, their speed, and their insight. My management team and I have been lucky enough to spend time with some key people at Google, and we've always walked away excited about our shared values and similar cultures. In all of our interactions we've felt their passion for innovation and new ideas."
No doubt, maintaining this enthusiasm will be critical, especially as the mobile ad space gets more and more competitive.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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