For $400 M. Google Gets AdMeld and a new Conflict of Interest

Google’s dominance in search often makes acquiring new companies difficult. It had to agree to a number of big concessions when acquiring travel data giant ITA.

Now Mike Arrington is reporting that Google has plunked down $400 million for New York based AdMeld, which helps publishers to sell their excess inventory across multiple ad networks.

“It’s going to be tricky,” says ENIAC Venture’s Nihal Mehta. “Because now Google will own the platform for helping publishers find the best ad network, while themselves owning one of the major ad networks.” 

Google is making a major push beyond the keyword driven advertising into display advertising, recently passing long time leader Yahoo on this front. AdMeld offers to help companies shop the most competitive bids and also sells private advisory service on the side.

According to a few sources AdMeld has some seriously impressive growth over the past year. As long as they can avoid any appearance of impropriety they can now rely on Google’s deep pockets to become an even more dominant force.

The company has raised a total of $30 million, so this exit would be a nice win for for the companies venture backers. Again we are told that AdMeld’s great growth numbers was the reason Google was willing to pay such a premium. For $400 M. Google Gets AdMeld and a new Conflict of Interest