Apple buys mobile ad network Quattro Wireless

Posted by Alisa Zykova on January 6, 2010 at 10:24 AM

On Tuesday technology giant Apple acquired mobile advertising company Quattro Wireless for almost US$300 million, "according to a person briefed in the deal," The New York Times reported. The venture is expected to spark more competition between Apple and Google, which recently acquired mobile ad firm AdMob, itself Quattro's rival.

Analysts say Apple may be more interested in apps than ads, making the iPhone the best device for applications to be built for, rather than focusing on ad revenue, The Times pointed out. Piper Jaffray Senior Research Analyst Gene Munster told The Times that 80 percent of three billion downloads from Apple's App Store are free and that an opportunity to sell ads may aid developers in making money.

According to Agence France-Presse, Ex-Quattro Wireless Chief Executive Andy Miller, now Apple Vice President for Mobile Advertising, said the mobile ad firm was "focused on delivering more engaging and useful ads to mobile devices, and improving the measurement and execution of digital campaigns."

The Massachussetts-based Quattro raised almost US$30 million from investors Highland Capital Partners and Globespan Capital Partners. The Wall Street Journal mentioned that clients include Ford, Disney and the National Football League (U.S.).