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March 19, 2007

Late Friday, Google said it has acquired video game advertising company Adscape, with plans to further expand into in-game advertising in the video segment of the market.

Details of the transaction were not disclosed.

Citing unnamed sources, last month technology Web site Red Herring wrote that the value of this new Google deal could be estimated at around $23 million.

In February, some video game analysts said Google's new entrance into the field of video advertising could give the industry a new life.

Google said on its Web site "as more and more people spend time playing video games, we think we can create opportunities for specific advertisers to reach their target audiences while maintaining a high quality and engaging user experience."

In 2006, Microsoft paid $200 million to buy in-game video ad company Massive Inc., which has secured deals with game publishers UbiSoft Entertainment SA, THQ Inc. and Take-Two Interactive Software Inc.

Google added "we think this rich environment is a perfect medium to deliver relevant, targeted advertising that ultimately benefits the user, the video game publisher and the advertiser."

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Source: CNN Money