Google formally confirmed reports Friday that it has joined the in-game ad fray with the acquisition of San Francisco-based Adscape Media; Lazard Capital Markets calls it "further validation of in-game ad market."
Reports of the acquisition originated in January in a Wall Street Journal report. Adscape chairman and former Sega of America COO Bernie Stolar wrote in Google's blog, "Our charge at Adscape has always been to honor the game that was developed and find new ways to enable that game to continue so others can enjoy it. That's why we are so stoked to join Google-because these guys get it, and are committed to helping us continue our mission."
As recently as mid-February, Google referred to reports of the acquisition as "rumor and speculation," although it had become clear that the deal was soon to become official.
The acquisition is estimated to be worth $20-25 million dollars, although Google hasn't officially revealed the price of the transaction.