) recently acquired two small enterprises in a move to bolster its
advertising and wireless businesses.
The technology giant announced the acquisition of MDialog Corp.,
a video-advertising company, and a wireless-communications startup
Alpental Technologies Inc. Financial terms of both the deals
were not disclosed.
Boosting Video Ads via MDialog
MDialog Corp., a San Francisco-based video advertising
technology company, works with a number of large media businesses
to handle and deliver video advertising across a range of
IP-connected products, including
) iPad and iPhone, Android devices and
Video advertizing is being increasingly chosen over traditional
display advertising because of the growing importance of mobile
devices where display ads don't work that well. Google remains the
largest player in a shrinking mobile search market. So it needs to
innovate rapidly to fend off competition from non-search apps, such
as Facebook that are grabbing an increasing percentage of mobile
advertising dollars. Google intends to use the acquisition to
improve its DoubleClick online advertising platform.
Following the deal, mDialog will continue with its service.
However, Google will gradually integrate mDialog technology into
its DoubleClick platform.
Expanding Internet Services through Alpental
Alpental, a Washington based company, was founded by former
Clearwire officials and develops low-priced, high-speed
communications service applying the 60GHz band of spectrum. It
basically develops tools related to next generation 5G wireless
The deal is expected to enhance Google's recent efforts to
globally expand Internet coverage. Google can also integrate
Alpental's technology into its Fiber service, which offers Internet
data-transfer speeds of up to one gigabit per second in homes. In
April, Google had stated its intention to add Wi-Fi to expand the
range of its Fiber services. Therefore, the latest deal may help
Google to extend service in some areas, without having to bear the
cost of constructing new wireline networks.
Alpental's employees have already joined Google.
Google is a stable company with consistent revenue growth and
profitability. It remains the dominant player in search across
desktop and mobile platforms. To add to its capabilities and
bolster its existing businesses, Google continues to acquire
smaller companies with specialized technology and/or strong
presence in chosen markets. It made five acquisitions last month
and three in June.
However, the impact of acquisitions is not clear because Google
usually keeps them small and says little about them. Intensifying
competition from companies like
) and Facebook is also a concern.
Google currently holds a Zacks Rank #2 (Buy).
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