Google Buys AdMob For $740 Million

San Francisco, CA (AHN) – Google has sealed a $740 million deal to buy a firm that displays advertisements on mobile phones, the search engine giant announced Monday.

Google said the acquisition of AdMob aims to hasten its efforts to develop effective schemes for placing ads on smartphones and other mobile devices. The acquisition will also allow it to catch up on rival Yahoo, which is ahead of it in the area of display advertising, Google’s vice president of product management Susan Wojcicki said.

The two firms will finalize the deal in the next few months.

AdMob started in 2006 and has received $47 million financing from venture capitalists. Its headquarters employs 140 people.