TELECOM Digest OnLine - Sorted: Google Agrees to Buy Radio Advertising Company

Google Agrees to Buy Radio Advertising Company

Associated Press News Wire (
Tue, 17 Jan 2006 21:27:36 -0600

Google Inc. is continuing to expand its advertising capabilities
beyond the online world, agreeing to buy a company that automatically
connects advertisers with radio stations. The price could top $1.2

The company, dMarc Broadcasting Inc. of Newport Beach, Calif., creates
an automated platform that lets advertisers more easily schedule and
deliver ads over radio and keep track of when they air. On the
broadcaster side, the dMarc technology automatically schedules and
places such advertising, helping stations minimize costs.

Under the deal, announced Tuesday, Google would pay dMarc at least
$102 million in cash. If performance targets are met, Google would
make additional payments of up to $1.14 billion over three years.

The up-front cash payment will make only a small dent in Google's
reserves. Through September, Google had $7.6 billion in cash and
marketable securities, though it has since committed to making a $1
billion investment in Time Warner Inc.'s America Online unit.

Google said it plans to integrate the dMarc technology with its highly
successful Google AdWords platform, in which third-party Web sites
share revenues with Google for carrying the Mountain View., Calif.,
company's highly profitable search ads.

"Google is committed to exploring new ways to extend targeted,
measurable advertising to other forms of media," said Tim Armstrong,
Google's vice president for advertising sales.

Already, Google has bought advertising in print publications such as
tech magazines and resold chunks of the space to its online

Google shares rose 86 cents to close at $467.11 Tuesday on the Nasdaq
Stock Market.

Copyright 2006 The Associated Press.

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